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Can I file a 1040 personal and 1065 business forms separately if I have a LLC?

Beltsville, MD |

I have a LLC that that owns some rental condos, I currently file the 1065 as a pass through on my 1040 with schedule E. Can I file the 1040 and the 1065 separate of each other? That is not linking the LLC to my 1040?

I need to get a mortgage but the new Mortgage rules is against me having rental losses on my schedule E. I am thinking that if the LLC is a separate entity does it have to be on my personal tax returns.

Attorney Answers 2


  1. This should be posted in the tax law section, or contact your CPA. Generally, an LLC can either elect to be taxed like a partnership, in which case all income and losses pass through to the owners and are reported on their individual returns, or the LLC elects to be taxed as a corporation, in which case the profits/losses are not passed through and the LLC files its own income tax return. Because you have already elected partnership tax status, you would have to convert the LLC to being taxed as a corporation. There are some financial disincentives to doing so, but your CPA may be able to better explain the costs to you.


  2. If you are the sole owner of the LLC then this is considered a disregarded entity for income tax purposes and you would not file a Form 1065, but rather, report the income directly on your Form 1040. The only way to separately file the Form 1065 is to have a partner so that the entity can file the separate partnership tax return.

    However, even after filing a separate Form 1065, the losses and other income from the partnership will still flow through and be reported on your Form 1040. As the gentlemen stated above, the only way to separate the two would be to elect to be taxed as a corporation, which is not as tax advantageous.

    I would recommend meeting with a CPA or a tax attorney to discuss more fully.

    IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, I inform you that any U.S. federal tax advice contained in this communication is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication.

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