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CA Single Member LLC k1 when reporting Federal E and C

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    CA Single Member LLC k1 when reporting Federal E and C

    I doing the taxes for a single member LLC it's generating a K1 for my client.
    The same income is being reported on his 1040 on both Schedule C & E.
    Will the Franchise Tax Board be sending him a letter asking why we aren't reporting the K1 from the LLC?
    Should I put the K1 in on Schedule E page 2 and back out as reported on Schedule C & E?
    What are some of you doing in cases like this?

    #2
    In California a SMLLC is a disregarded entity, same as federal ... in most cases. However, a DSMLLC must still file a return, F-568, but only needs to complete certain portions. It must also pay the annual LLC fee of $800 and the LLC tax, if applicable. Unless the LLC is required to file a complete F-568, a K-1 is not required, and the owner/member reports the income and deductions on his own tax return, on Schedule C or E, same as federal.

    See FTB form 568, general instruction S for more information.
    Roland Slugg
    "I do what I can."

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