foreign LLC invested in the US partnership

Technical topics regarding tax preparation.
#1
Keyad22  
Posts:
1209
Joined:
13-Jun-2016 9:51am
Location:
Bay Area, California
Hello everyone,

My client just provided some K-1 for their individual income tax returns. Actually, my client, a permanent resident set up a foreign LLC with his foreign friend (50%:50% ownership) and invested in a venture fund in CA. The K-1s were eventually sent to the Foreign LLC. There are about thousand income in 2021 reported in the K-1s. (Sorry, just found one k-1 has half millions capital gain reported in the line 9a of the K-1)

The venture fund will sent millions income in 2022, I was told.

Questions:
1. Should the foreign LLC file a 1120F?

2. Or should the LLC reported in form 5471 with the personal individual income tax?

3. My client want to me to include half of the K-1 income with their personal income tax return. Is that allowed?

3. If the foreign LLC received millions income and was withholding foreign income tax in 2022, should the LLC file file the tax return for itself?

Thank you,
 

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