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03 - Accounting & Taxes Accounting Help & Tax Strategies

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  #1  
Old 02-16-2005, 09:40 PM
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Default tax form 1065 for LLC question

Hello,

I have a question regarding:

Form 1065, Page 1, item E : Date Business Started.

What date are they asking for? Date the business was organized (f.e. Articles of organization filed) or the date when active trade or business begins?
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Old 02-16-2005, 09:55 PM
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Take your pick! You are the only one that really says when the business has started, but it is usually shortly before you have income. Some use the date they open a business bank account but it could start before that, usually not after. It usually is to your advantage to use the earliest date unless it was in a prior year where you would have to file prior and current tax returns. Just go with whatever works out as the best date for you. Difficult decisions are a part of business and sometimes you just have to go with your best bet.
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Old 02-17-2005, 02:46 AM
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Quote:
Originally Posted by OldJack
Take your pick!
Thanks =)

One more question:

1065, Page 1, question 5.

If I answer yes (total receipts <250k, etc), then I don't understand whether I have to complete neither of L, M1, M2, Item F (1065), Item N on Schedule K1, or it's my choise to fill L, M1, M2, Item F on 1065 OR Item N on Schedule K1?
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Old 02-17-2005, 06:43 AM
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If you can answer yes to question 5, on 1065 page 2, meeting all 3 requirements, then you do not have to fill in box F, on 1065 page 1, Schedules L, M1, M2, on 1065 page 4, or Item N on 1065 Sch-k1.

With a yes on the question it is your choice to fill them in or not! I always fill them in as it is good to document the numbers in case someone else is going to prepare the next years tax return it services as a guide. Also, if you have to show your tax return to a bank or someone they would want that information.
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Old 02-17-2005, 07:55 AM
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I put the starting date I applied for my EIN -- which was also the day listed in the partnership agreement.

Also, I answered yes to that question as well because I am not even close to $250K in sales/receipts.
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Old 02-17-2005, 08:10 AM
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Filling in the page 4 info is a good idea as it shows the IRS that you have good accounting and bookkeeping.
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Old 02-17-2005, 11:44 AM
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Quote:
Originally Posted by OldJack
Filling in the page 4 info is a good idea as it shows the IRS that you have good accounting and bookkeeping.
Good point.

I probably did not formulate the question correctly.

Even if I answer "Yes" then anyway I'll have to fill either page 4 or Item N on 1065 Sch-k1, right? It doesn't give me the right to skip both. It's now my choise to choose.
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Old 02-17-2005, 08:48 PM
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If you answered yes to the question you do not have to fill out any of those items. You can skip both. I would suggest you fill in both even if you answered yes.
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