need to file ? Partnership

[WITAXLADY]

LLC Partnership with five siblings owning a piece of land - no income, just pay property taxes...

Search says check into Section 501 - cannot find that - on whether they really need to file a return every year?

Any ideas - IRS says if income or expenses to report -

so they do not care to report or just carry the property taxes into the sale - down the road? And then file upon selling?

Thank you

[Catherine]

A partnership is a venture for profit.  An arrangement merely to share expenses is NOT a for-profit endeavor, and need not file a partnership return.  If they have no income, it's good to track the payments they each make as that adds to their basis for the eventual sale (one hopes, for gain) on the land.  But I don't see this being a partnership and requiring a 1065.

I have a client who insists on filing a return every year for a "partnership" to share expenses with a buddy, with whom he co-owns a small plane.  He does it himself; all zeros.  Whatever.  

[Randall]

I have a similar situation, an LLC, two members, holding land.  We never filed a 1065 for several years, then Ky  contacted them.  Since they were an LLC, Ky wanted that $175 fee every year.  So  I prepare the 1065 which flows to Ky 765.  I told them to pay the property tax themselves so not to flow thru 1065.  Land, no depreciation, no loss, no change in basis (at least inside basis).