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Old 04-17-2016, 07:10 PM
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Llc member became citizen this year.

We created an LLC last October in anticipation of buying a rental property. We did not have any income in2015, just the $300 expense of filing for the LLC. My wife was a resident alien until March of this year, when she became a naturalized citizen.

When filling out the 1065 paperwork, do I need to say she's a foreign individual since she was not yet a citizen at the end of the tax year? Or can I say she is a us citizen, since she now is.

If she has to put in as a foreign individual on this one, can it simply be changed next year?

Thanks
James



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Old 04-17-2016, 10:34 PM
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Originally Posted by Jandvs View Post
We created an LLC last October in anticipation of buying a rental property. We did not have any income in2015, just the $300 expense of filing for the LLC. My wife was a resident alien until March of this year, when she became a naturalized citizen.

When filling out the 1065 paperwork, do I need to say she's a foreign individual since she was not yet a citizen at the end of the tax year? Or can I say she is a us citizen, since she now is.

If she has to put in as a foreign individual on this one, can it simply be changed next year?

Thanks
James
Followup question. I'm using TaxAct for my return. The 1065 filing gives me two K1's. One for me and one for may wife. Does that mean I have to add both to the 1040, one for me and one for her? or can I combine them for me and her equally? The K1's show everything to be 50%. (I'm assuming the latter).



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Old 04-18-2016, 12:40 PM
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Join Date: Oct 2010
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Quote:
Originally Posted by Jandvs View Post
We created an LLC last October in anticipation of buying a rental property. We did not have any income in2015, just the $300 expense of filing for the LLC. My wife was a resident alien until March of this year, when she became a naturalized citizen.

When filling out the 1065 paperwork, do I need to say she's a foreign individual since she was not yet a citizen at the end of the tax year? Or can I say she is a us citizen, since she now is.

If she has to put in as a foreign individual on this one, can it simply be changed next year?

Thanks
James
No; she, a green card holder, is not a foreign partner UNLESS she was a foreign non resident alien. as your spouse was a resident alien she is treated as a US citizen;permanent residency is the immigration status of a person authorized to live and work in the USpermanently



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Old 04-18-2016, 01:18 PM
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Quote:
Originally Posted by Jandvs View Post
Followup question. I'm using TaxAct for my return. The 1065 filing gives me two K1's. One for me and one for may wife. Does that mean I have to add both to the 1040, one for me and one for her? or can I combine them for me and her equally? The K1's show everything to be 50%. (I'm assuming the latter).
it deepends; as;longas you file your return as MFJ with your spouse, you need to combine them on your j oint 1040.An S corp filed federal form 1120S. This is an informational return only. By that, I mean that the income and expense figures for the S corp are reported on the tax form, but the bottom line is divvied up between the shareholders and taxed on their Form 1040 at their individual tax rate. since you?re a husband and wife filing a joint return, you?re considered one person in the eyes of the IRS so all the S corp income or loss will be lumped together with all your other 1040 items.



if a husband and wife are both shareholders but they file separate returns, thenEach spouse?s portion of the S corp income or loss is reported separately on the individual 1040s.In genral,It is advisable to report it separately on Sch E - listing it as - one owned by taxpayer and one by spouse.
Tax effect would normally be the same



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