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Hello,
I started an LLC with my brother and nephew (my brother's son) and need some information on complete Form 1065. I am using Tax Act to do this. The business purpose of this LLC is for trading currencies, and we opened in October 2012, so we are fairly new. Last year we had a realized loss of $45 and some other minor expenses (bank fees and LLC registration). At the end of 2012 we did have an open position but that gain was unrealized at the of 2012.
1. Since my brother invested half of the total capital, he owns 50% and therefore needs to complete schedule B-1. Under rules of constructive ownership, would my nephew also need to file schedule B-1?
2. On schedule K1 and B1, do we classify the trading loss as a short-term capital loss? (line 8)
3. Do we need to complete Schedule L (Balance Sheet per Books) on the 1065? Would we count our open position at the end of 2012 as an asset?
4. Do we need to complete Schedule M2?
5. My brother is currently a resident alien for tax purposes. What are the implications for Schedule B1? Tax Act prompted me to answer if he was a foreign or domestic partner (to which I answered "domestic") and the program automatically defaulted the Country of Citizenship to "US".
I look forward tohearing from you!
Marie
I started an LLC with my brother and nephew (my brother's son) and need some information on complete Form 1065. I am using Tax Act to do this. The business purpose of this LLC is for trading currencies, and we opened in October 2012, so we are fairly new. Last year we had a realized loss of $45 and some other minor expenses (bank fees and LLC registration). At the end of 2012 we did have an open position but that gain was unrealized at the of 2012.
1. Since my brother invested half of the total capital, he owns 50% and therefore needs to complete schedule B-1. Under rules of constructive ownership, would my nephew also need to file schedule B-1?
2. On schedule K1 and B1, do we classify the trading loss as a short-term capital loss? (line 8)
3. Do we need to complete Schedule L (Balance Sheet per Books) on the 1065? Would we count our open position at the end of 2012 as an asset?
4. Do we need to complete Schedule M2?
5. My brother is currently a resident alien for tax purposes. What are the implications for Schedule B1? Tax Act prompted me to answer if he was a foreign or domestic partner (to which I answered "domestic") and the program automatically defaulted the Country of Citizenship to "US".
I look forward tohearing from you!
Marie