Author Topic: Anyone use a tax program for LLC  (Read 513 times)

Unique User

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Anyone use a tax program for LLC
« on: January 08, 2019, 06:47:39 AM »
We have a LLC for our rental property and just have a few expenses and rental income this year, nothing complicated.  We've had a CPA do the taxes for years and I mentioned using a tax program this year.  He told me to check it out and let him know, but thought we should be able to use a program. Anyone have a recommendation? 

SeattleCPA

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Re: Anyone use a tax program for LLC
« Reply #1 on: January 11, 2019, 09:10:43 AM »
Presumably the "we" in your message indicates a multiple member LLC, which means your LLC needs a partnership return. That seems beyond DIY...

Note: Spouses who are residents of community property states and who are only owners of LLC can treat LLC as a disregarded entity. That means the rental property just goes on your Schedule E. That can be DIY...

Reynold

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Re: Anyone use a tax program for LLC
« Reply #2 on: January 23, 2019, 06:21:51 PM »
I have been doing a partnership LLC return with the H&R Block Premium/Business software for several years now, it is a fairly simple business (all services, no inventory, etc.) and I used the previous work by a CPA as a guide.  I found the tricky part is getting everything entered properly into the accounting software so that it goes smoothly into the tax software. 

I would consider it more of a DIY project than the roofing work Mr. Money Mustache does, since if I get it wrong all I have to do is pay some money, rather than having irreplaceable family mementos in my house ruined by a water leak. :)   My business is not a large income stream, though, so there are not large stakes.  I would also rather learn how to do my business taxes, which I will save money on every year, than learn how to put a leak-free roof on my house, which I will do maybe twice at most. 

jpdx

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Re: Anyone use a tax program for LLC
« Reply #3 on: January 24, 2019, 10:45:25 PM »
I've been doing our partnership return with TurboTax Business for a number of years. There was an initial steep learning curve, but it's doable DIY if you're tax savvy. Unfortunately the software does not run on Mac.

CareCPA

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Re: Anyone use a tax program for LLC
« Reply #4 on: January 29, 2019, 07:11:58 AM »
I think if it was just a matter of taking numbers and putting them on the form, you'd be fine. But in a real estate partnership, there are other considerations:
Do you have basis to keep taking losses? Are the loans guaranteed or non-recourse?
Are the costs you incurred this year expenses or capital improvements?
Can you do a partial writeoff for the roof you replaced? What about the HVAC components? Etc...
Are you eligible for the Section 199A deduction (see @SeattleCPA 's posts for more info)
Did you pull a partnership agreement off the internet that mentions 704(b), and do you understand what that actually means in terms of special allocations and minimum gain?

The actual form itself is often the easy part, but you need to make sure you've done the legwork to put the correct numbers in the correct place.

Your taxes may not be this complicated, but I think it's important for anyone considering a DIY business return to understand that there is more that goes into it than just putting income and expenses on a form (note, I may be biased, I am a CPA, but I've seen some bad returns, even from other CPAs!).

SeattleCPA

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Re: Anyone use a tax program for LLC
« Reply #5 on: January 29, 2019, 10:08:40 PM »
I think if it was just a matter of taking numbers and putting them on the form, you'd be fine. But in a real estate partnership, there are other considerations:
Do you have basis to keep taking losses? Are the loans guaranteed or non-recourse?
Are the costs you incurred this year expenses or capital improvements?
Can you do a partial writeoff for the roof you replaced? What about the HVAC components? Etc...
Are you eligible for the Section 199A deduction (see @SeattleCPA 's posts for more info)
Did you pull a partnership agreement off the internet that mentions 704(b), and do you understand what that actually means in terms of special allocations and minimum gain?

The actual form itself is often the easy part, but you need to make sure you've done the legwork to put the correct numbers in the correct place.

Your taxes may not be this complicated, but I think it's important for anyone considering a DIY business return to understand that there is more that goes into it than just putting income and expenses on a form (note, I may be biased, I am a CPA, but I've seen some bad returns, even from other CPAs!).

But real estate partnership returns often will be this complicated...

@CareCPA does good job of identifying the big complexities above.