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An LLC with several members (multiple investors) is generally considered as partnership.
The partnership is no disregarded entity, but it is a pass through entity - it is files its own tax return - but do not pay income taxes.
You do not need to file from 8893.
A partnership is the relationship existing between two or more persons who join to carry on a trade or business. Each person contributes money, property, labor or skill, and expects to share in the profits and losses of the business.
A partnership must file an annual information return to report the income, deductions, gains, losses, etc., from its operations, but it does not pay income tax. Instead, it "passes through" any profits or losses to its partners. Each partner includes his or her share of the partnership's income or loss on his or her tax return.
Some additional information about partnerships may be found in IRS Publication 541 - http://www.irs.gov/publications/p541/index.html
All business income and expenses are reported on the partnership tax return form 1065 - http://www.irs.gov/pub/irs-pdf/f1065.pdf
Partnership should issue schedules K-1 to each partner reporting pro-rata share of net taxable income - http://www.irs.gov/pub/irs-pdf/f1065sk1.pdf
Let me know if any clarification needed.
Here is the Question:
For the Tax year for which you ar Filing, Will the partnership file form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment?
Yes or No
Also what is a Section 754 election
For the Tax year for which you are Filing, Will the partnership file form 8893, Election of Partnership Level Tax Treatment, or an election statement under section 6231(a)(1)(B)(ii) for partnership-level tax treatment?
You do not need to fir form 8893 - that is very special treatment.
The answer is No.
Also what is a Section 754 election.
See IRS publication 559 - www.irs.gov/pub/irs-pdf/p559.pdf
The death of a partner closes the partnership's tax year for that partner. Generally, it does not close the partnership's tax year for the remaining partners. The decedent's distributive share of partnership items must be figured as if the partnership's tax year ended on the date the partner died. To avoid an interim closing of the partnership books, the partners can agree to estimate the decedent's distributive share by prorating the amounts the partner would have included for the entire partnership tax year.
On the decedent's final return, include the decedent's distributive share of partnership items for the following periods.
The partnership's tax year that ended within or with the decedent's final tax year (the year ending on the date of death).
The period, if any, from the end of the partnership's tax year in (1) to the decedent's date of death.
The partnership can make an IRC section 754 election to equalize a new partner's outside and inside basis. See this article and examples - http://www.nysscpa.org/cpajournal/2005/205/essentials/p50.htm
So why you are asking about Section 754 election?
Just do not worry about that - at least for now...