CA SMLLC with 2 real estate properties

Forum|Forum|3 years ago
March 24, 2023
1 reply
14 views

Client had a rental property in a CA Single Member LLC. I prepared a Schedule E, and then selected that as the source for the CA SMLLC.

Client has now added another rental, so 2 Schedule E's. How do I link both Schedule E's to the same SMLLC?

Lacerte Tax

This topic has been closed for replies.

Best answer by itonewbie

On Screen 54.013, California Single Member LLC, scroll down to the section for Additional Linked Business;
Under Form, select Schedule E (rental), and under Activity Number, enter 2 (for the 2nd Sch E property);
Repeat step 2 for the 3rd and 4th property.

Data from all 4 Sch E properties will then flow through to CA Form 568.

itonewbie

Level 15

If you're referring to the couple's individual income tax return, what is the link to SMLLC you're referring to?

These will just be reported on Sch E as two other rental properties.

See also this recent discussion about CA SMLLC rental properties:

https://proconnect.intuit.com/community/proseries-tax-discussions/discussion/llc-for-rental-homes-schedule-e/00/240507

---------------------------------------------------------------------------------Still an AllStar

J

jerryAuthor

Level 6

Sorry I wasn't more clear - I guess tax brain is leading me to too much brevity. Let me elaborate.

California client (MFJ/MFS) had a rental property, filed on Schedule E. His attorney advised him (he is ultra high net worth) to move the property to an CA Single Member LLC for liability reasons. That's OK, that's a legal question, not a tax one. I added a CA SMLLC to his tax return, linked it to the Schedule E, and all was well. Federal got the Schedule E (treated LLC as a disregarded entity), and LLC reported the income (loss) from Schedule E.

Then client added another property to his portfolio, and attorney had him put it in the same LLC. Now he has 2 Schedule E's, one for each property, and for Federal, 2 Schedule E's need to be filed. But Lacerte seems to only allow a single Schedule E to be linked to a CA SMLLC. So I'm stuck.

How do I file a SM LLC 568 return when the source data comes from 2 different Schedule E's?

itonewbieAnswer

Level 15

On Screen 54.013, California Single Member LLC, scroll down to the section for Additional Linked Business;
Under Form, select Schedule E (rental), and under Activity Number, enter 2 (for the 2nd Sch E property);
Repeat step 2 for the 3rd and 4th property.

Data from all 4 Sch E properties will then flow through to CA Form 568.

---------------------------------------------------------------------------------Still an AllStar

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