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Roger
Roger, Attorney
Category: Business Law
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Experience:  BV Rated by Martindale-Hubbell; SuperLawyer rating by Thompson-Reuters
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My mom purchased a property in February, 2009; the whole rental

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My mom purchased a property in February, 2009; the whole rental income was reported on her return for that year. In November 2009 she transferred the property to a newly formed LLC . In 2010 the whole rental income was reported on the LLC return. In October, 2010 she signed a QCD which would transfer the property from the LLC ( by operating agreement, which shows her owning 96% of the company interest) back to her. She was planning to stay outside the country for long, therefore I wanted to have something just in case. I did file this QCD in December of 2011 but it appeared (of course) as dated October 2010. Seems like I should file her personal return for 2011 and report the rental income there. My question: Do I need to file 0 income for the LLC or at least send some explanation of the above? I also want to close the LLC, there’s nothing else on it. Thanks

Hi - my name is XXXXX XXXXX I'm a Business Law litigation attorney here to assist you.

 

The deed is not legally effective until the filing date as that is the date that the public is put on notice of the transfer. Thus, legally, the property didn't legally transfer until December 2011 - when the deed was recorded.

 

However, if your mother collected rent personally - and not through the LLC - she should include the income on her personal income taxes. Also, if the LLC didn't make any money, there's likely no reason at all to file a return. However, I would defer to a CPA for the tax issues - it may be that a CPA would want her to file a return showing no income and no assets.

 

As for dissolving the LLC, you can fill out the dissolution paperwork and file it with the Florida Secretary of State. Here's a link to the forms you need: http://form.sunbiz.org/pdf/cr2e048.pdf

 

 

Customer: replied 5 years ago.
Many thanks. One thing to clarify: Why would she file a return showing no income and no assets, if she has both?

Sorry for the confusion. The comment that "if the LLC didn't make any money, there's likely no reason at all to file a return" is in regard to the need for the LLC to file a return. Thus, I don't think it would be necessary for the LLC to file a return if it made no money.

 

She would file a return personally, however.

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