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Updated about 7 years ago on . Most recent reply presented by

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Ari Bachrach
  • Rental Property Investor
  • Silver Spring, MD
59
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What sort of paperwork do I need to generate for a flip

Ari Bachrach
  • Rental Property Investor
  • Silver Spring, MD
Posted

I'm signing the papers to sell my first flip in a few hours. Despite everything going wrong that could have gone wrong, we're actually going to make money on the deal. (Wooo!) The flip was done in a multi member llc that me and my partner each own 50% of. I kept very good records of every expense incurred throughout the project. At the end of the year I assume I'll need to generate some sort of forms for tax purposes that show how much money each of us made. What do I need to do? Do I actually need to give myself and my partner a 1099? Do I just make the distributions to each of us and then each of us reports it on our own returns as other income without an official form? Something else?

Most Popular Reply

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Lance Lvovsky
  • Accountant
  • Fort Lauderdale, FL
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1,407
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Lance Lvovsky
  • Accountant
  • Fort Lauderdale, FL
Replied

Have you met with your CPA? If you don't have a CPA, then I recommend you get one.

Your multi-member LLC will be required to report all income and expenses on a separate tax return. Assuming it is a partnership for tax purposes, then it would be a Partnership tax return. If an S Corp election was made, then it would be an S Corp tax return. The LLC also needs to obtain an EIN.

Your best next step is to speak with a CPA.

  • Lance Lvovsky
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