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An LLC has no bearing on tax reporting since it is the underlying entity that counts. In this case the entity is a Joint Revocable Trust, which is also disregarded for tax purposes due to its grantor status. Therefore the grantor is treated as the owner(s) for tax purposes. Since the husband and wife are the actual owners for tax purposes, they meet the requirement of sec 761(f)(2)(a) for a QJV as I see it. I don't see where community property state vs non comes to play under sec 761. Report on Schedule E.

No, the losses in year of death are handled like any other year. Any capital losses that are unused (those that would carryfwd if the person lived) are lost. They die with the decedent.

I should have said are all of the losses deducted on the Form 1040 which would require possibly overriding the line item as using Schedule A the client may not have gotten the full amount taken off. It is a moot point as her itemized deductions far exceed the standard deduction but the ATX software shows only the $3000 yearly amount on the Form 1040 so I will simply deduct that from the total loss and show the remaining amount on her Schedule A. I think this is correct but I have not done one of these in many moons.

A client passed on in 2024 having some $25,000 plus in remaining capital losses. Are these deducted on Schedule A or on the Form 1040?

"Designates a person on the taxpayer's tax form to discuss that specific tax return and tax year with the IRS." My understanding is that this only allows you to discuss what's on the form submitted. It doesn't authorize the IRS to share any information with you or for you to represent the taxpayer. I don't believe that responding to a notice received by your client is covered by being a third party designee.

Two weeks ago I called the IRS in regards to a notice my client received which I have third party designee, guess what I had to conference call my client to discuss the notice. First in all the years of doing business, the payroll report was filed in April 2025 so it was not expired.

I thought an LLC was an unincorporated entity because it's a partnership.

No matter how many people they hire, it won't improve significantly until they invest in new infrastructure. I had to be transferred three times, over two hours, to reach the person who could access the platform needed to fix the issue. Once I got to the right person, it took 10 minutes to resolve the issue.

I worded that very poorly. I revocable trust can have biz prop that is QJV, but it can't be in an LLC, rather it must be operated in an unincorporated entity. So in your case, QJV would be off the table on 2 scores: because the rental is in an LLC and because the client is in a non-community property state. Sorry for the confusion.

I learn something new everyday. Thanks!

Revocable trust is a grantor trust and is generally ignored for tax return reporting unless it has an EIN and requires a separate 1041 for income to pass through. As you said, QJV is off the table because you are dealing with a non-community property state. Trusts are precluded from holding business property that elects to be QJV anyway. With all of that in mind and being a revocable trust, then the LLC reporting falls to state law. If this had been a SMLLC, then it would certainly be reported on 1040 Sch E. Because it is a MMLLC, then you would look to state law which probably says that the multi-member LLC (even H-W) would default to a partnership unless the LLC had the ability and elected to be taxed as a corporation. In your client's case, it sounds like this should be on a 1065 using form 8825 with the husband and wife each receiving a K-1 from the partnership.

Honestly for the last several years, my experience once I have reached an IRS employee has been satisfactory. Does it take too long to get someone on the phone ? Yes it does. Does it take too long for them to find an answer or to change something in one of their programs? Yes it does. However given the old systems they are still working with that don't share information, I think they are doing the best that they can under difficult circumstances.

11,000 new call center employees given a 2 week crash course in tax law and phone etiquette !!! Hey thats what we had before the layoffs !!!

Great point. They are still looking for it. The did all this last year, and did not mention it to me till Tuesday. The LLC has one owner, the revoc trust. The revoc trust's grantors are a married couple. This is where my uncertainty stemmed from. If I look at the LLC ownership 1st (and only), there's a single owner (the rev trust) so ... it's a SMLLC. But as @Lee B pointed out, drilling down deeper, the trust is disregarded bc it's revocable, so then the grantors of the trust are LLC owners. Married couple, thus two people, common law state so MMLLC. Thank you everyone for your input.

Is the Trust the ONLY member in the LLC, so it's a SMLLC? Or, does the Trust AND the husband AND the wife own the LLC, so it's a MMLLC?

If you have the EIN letter for the LLC, what form does it say the IRS is expecting?

As long as the trust is revocable, wouldn't the trust be disregarded and the LLC be required to file an annual Form 1065?

People can physically go to the bank to make withdrawals and deposits. No passwords or online banking required. Just an ID, and sometimes, not even that.

Maybe! This still requires technical knowledge and many, especially senior citizens, simply don't have it. If I transfer money, for instance, from a business account to a personal account; I still need to know account numbers and often even a password. Until the last member of MY generation is gone, and beyond, there will always be problems

As the title says Married Couple's Revocable Trust Owns "Rental Property LLC" in a Common Law State. (So, No Community Property State, No QJV) Ignoring the trust part for a second, couple is then required to file 1165 partnership rtn because they are a multi member LLC. But there's always a monkey wrench that makes me go . Is the TRUST considered a single entity, so then the LLC is considered a disregarded entity and can forego the 1165, filing Schedule E direcly on the married couple's 1040? My gut says no, but maybe there's a legal element in play that someone's seen before?

Great Idea Mr. Normal

You don't need a computer to send or receive funds electronically, you just need a bank account. With DOGE endangering all of our personal information, I recommend setting up a small balance account at a different bank to receive or pay fund electronically. Then you transfer money to or from that account as needed. That way your real bank info is not out there.

Did someone say AI?

I am already dealing with late fees because paper checks never seem to get there on time. I hope that I never have to deal with Direct Withdrawals, but am perfectly willing to pay online if possible. I do, however, feel very sorry for the folks who do not have the knowledge or technical ability that I have. I have many clients who don't even own a computer, let alone know how to operate one. I try to assist them as much as is humanly possible. How far are they going to try and push us and how far are we willing to be pushed? Hopefully, humans will always remain superior to A.I.