Can I file this year as single member LLC instead of partnership LLC?

jrkyaker

Wife and I have had a 1 rental house partnership LLC and have been filing a partnership return. During '24 went thru the process with the Secretary of State to disassociate wife from the business and change it to a single member LLC and also obtained a new EIN from IRS. Can I file this years return using 1040 Schedule C as part of 1040 return without creating an issue with IRS?

MatthewD

Hello jrkyaker,

What you described is you dissolved the partnership in 2024 and started a new LLC. You still need to file a Form 1065 since your spouse was a partner for part of 2024. Then report the Schedule K-1s, which are reported on the Schedule E. See the Partnership section under Business Income. The single owner LLC rental income may be reported on the Schedule E as Rental income (unless you qualify to report the rental income as a Schedule C). Then next year you just report the single owner LLC as rental income on the Form 1040, Schedule E without any issues.