Tax Return Needed? - Single Property New 2018 LLC No Income

Tax, SDIRAs & Cost Segregation
7yFollow

Tax Return Needed? - Single Property New 2018 LLC No Income

Michael CrossPro Member
Rental Property Investor · Smithsburg, MD · Member since 2016 · 58 posts · 41 votes

I created a new LLC for a property i bought with a partner in October 2018 to rehab and rent. We are still rehabbing that property so have not made any income from it yet. Renovations should finish this month.

Do i need to file a tax return from the LLC for 2018? I own 3 other Properties not in an LLC personally

Thanks,

Mike

0Reply
5 views

1 Reply

Jump to latestLatest
  • Natalie KolodijBusiness Member
    Moderator
    Tax Strategist| National Tax Educator| Accepting New Clients · Member since 2014 · 3k+ posts · 4k+ votes
    7y

    Hi Michael, 

    The answer is it depends. 

    By setting up a 2 person LLC you created a partnership.

    They are not required to file first year per say if there was no income or expenses. Much of your expenses will be capitalized as renovations. 

    But if there are any expenses not directly correlated to the property, and or any tax documents issued to the Partnership's EIN then you will need to file. 

    I'd check with your tax pro. 

    Podcast Guest on Show Pay Less Tax to the IRS This Year With THESE Real Estate Tax Strategies
    Kolodij Tax & Consulting
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free