Kiran
January 20, 2025, 11:10am
1
Basically the title. I have some real estate, and I am filing my 1065, which includes filing my 8825 and by extension my 4562.
This is the first year I’ve been paying utilities on the property (in the past, they were handled by the tenants).
I know utilities are deducted somewhere, but where, exactly? Both?
8825 L12 explicitly says “Utilities”
However 1065 L21 says “Other deductions (attach statement)”.
> Line 21. Other Deductions
> Enter the total allowable trade or business deductions that aren’t deductible elsewhere on page 1 of Form 1065. Attach a statement listing by type and amount each deduction included on this line. Examples of other deductions include the following.
> …
> • Utilities.
But this feels like I would be deducting utilities twice, which can’t be right.
So where do I put it?
ETA: Business entity is LLC partnership
Fielder
January 20, 2025, 11:10am
2
8825 only
> Business entity is LLC partnership S corp
This can’t be true. It sounds like it’s a partnership.
Kiran
January 20, 2025, 11:10am
3
Fielder said :
8825 only
> Business entity is LLC partnership S corp
This can’t be true. It sounds like it’s a partnership.
Worried I’ve got something wrong here.
Yes, probably a partnership. Definitely an LLC. Probably a “partnership” not “S Corp”. I agree.
So on L21 of 1065 leave blank (no utilities go here). Sounds good.
Fielder
January 20, 2025, 11:10am
4
@Kiran
Who owns the LLC?
If the LLC’s only activity is the rental, everything goes on 8825. Page 1 of the 1065 would be blank.
Kiran
January 20, 2025, 11:10am
5
Fielder said :
@Kiran
Who owns the LLC?
If the LLC’s only activity is the rental, everything goes on 8825. Page 1 of the 1065 would be blank.
Me and my father.
Only activity is the rental - yes. Wow. Page 1 is blank? That is wild. Shit man… I filed last year really wrong then…
Fielder
January 20, 2025, 11:10am
6
@Kiran
You can amend last year (would have to amend the associated 1040 returns as well).
Kiran
January 20, 2025, 11:10am
7
Fielder said :
@Kiran
You can amend last year (would have to amend the associated 1040 returns as well).
Oh balls. Dad ain’t gonna be happy about that one…
Fielder
January 20, 2025, 11:10am
8
Kiran said :
Fielder said :
@Kiran
You can amend last year (would have to amend the associated 1040 returns as well).
Oh balls. Dad ain’t gonna be happy about that one…
Don’t forget to take depreciation on the rental as well.
Kiran
January 20, 2025, 11:10am
9
@Fielder
Thank you. I believe I am doing that. MACRS. F8825 Line 14. $11,818 this year. Calculated from F4562. Screenshot by Lightshot
Fielder
January 20, 2025, 11:10am
10
Kiran said :
@Fielder
Thank you. I believe I am doing that. MACRS. F8825 Line 14. $11,818 this year. Calculated from F4562. Screenshot by Lightshot
You bought the rental in May 2022? Is $325k the purchase price or after you subtracted land?
Kiran
January 20, 2025, 11:10am
11
@Fielder
Yes. Purchase price.
Rey
January 20, 2025, 11:10am
12
Kiran said :
@Fielder
Yes. Purchase price.
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