1 : I have an LLC owned by Husband (51%) and wife (49%).
Based on the family attribution rules, I have to show both as 100% in column (iv) of Part II of Schedule B-1. (so, there will be 2 entries for 100% ownership - one for H and one for W)Is this understanding correct?
2 : If yes, then could anyone provide me the reference or citation or code section that I can read online on some website, to save in my workpaper file?
Answer :
1 : You need to
complete Part II of Sch B1 of 1065 as long as
you own, directly or indirectly, an interest of 50% or more in the profit, loss, or capital of the LLC; if Yes, you need to attach Sch B-1, information on partner(s) owning 50% or more of the LLC.In 2009, A new Sch B-1 has been added which will be required to be filled out when the partnership checks yes to questions 3a or 3b on Part B, indicating there is a greater than 50% partner.My understanding for SchB-1 is that even a 50% partner would be reported. The question that triggers the schedule reads ” an interest of 50% or more.
2 : I guess you can contact a CPA/ an IRS EA in your local area for more info in detail; please visit the website for the form inst.
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