A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations.
Depending on elections made by the LLC and the number of members, the IRS will treat an LLC as either a corporation, partnership, or as part of the LLC owner tax return (a disregarded entity).
An LLC that does not want to accept its default federal tax classification, or that wishes to change its classification, uses Form 8832, Entity Classification Election, to elect how it will be classified for federal tax purposes.
When there are several owners (members) - and there were no elected differently the LLC is classified as a partnership.
That means - the LLC filed its own tax return on form 1065 and all income or losses were passed to partners on K1.
Then each partner will file his/her own tax return - and will report his/her share of rental income passed from the partnership.
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