Question

Started an AirBnb business how do i file the partnership return correctly/married

Forum|Forum|2 years ago
March 19, 2024
1 reply
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Hello all, I have been doing my taxes on turbo tax for 20+ years, we started a Airbnb business this year and I am a bit lost. My wife and I have a partnership 50/50 on our LLC and our management company issues a 1099-MISC.

Question 1 - TurboTax stated I need to file a Schedule C for my wife and I and split Incom and expenses....which is fine i can do that but its a headache revise everything but I assume that's necessary...right?

Question 2 - We only have 1 1099-MISC from the management company so do I enter this twice and split the number between both of us? Will that cause and issue with the IRS when the 1099 does not match since i split it?

Question 3 - How do i handle deprecation assets...example we put in a new AC $5000 do I put $2500 under her and $2500 under mine?

Question 4 - The house itself assume the value is $400k so i now split this asset $200k her and 200k me and split land cost also etc...

Thanks for your help I enjoy learning and doing this myself vs paying someone to do it.

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TurboTax Home & Biz Windows

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RobertB4444

First, you should have filed a 1065 partnership return this year. That would pass the income through to you at a lower tax rate. Unfortunately, that return was due on March 15th and if you file it now you'll owe at least $440 as late fees and another $440 for every month (or part of a month) that it arrives late.

Since you're not doing the partnership return (which you don't have to do - an LLC is a disregarded entity) there is no point in splitting the partnership up on your schedule C for this year. Just enter it all under your name or your wife's name.

And then use the 1065 next year for sure.

@pike5131

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pike5131Author

Thanks for the response now I know why my friend was telling me to file the extension last week ugh. The business shows a loss this year so it should be ok on the tax front. Thanks for that information.