Single Member LLC with Different Tax Year?

I've got a guy who has a single member LLC which owns rental property. He has been self-preparing the returns. The LLC for some reason has a June-July fiscal year. Can he still file under Schedule E as a disregarded entity or would he need to file a 1065 because of the different fiscal year? I'm guessing not.

Assuming no election to be treated as a corporation (C or S) has been filed, I've always assumed that "disregarded" means, well, disregarded. Including the entity's fiscal year.

How would that be possible though? The entity's fiscal year is different than the individual. Unless you spliced two fiscal years together from the LLC you couldn't properly allocate the income to the individual.

From the -2 Reg:

In general. Except as otherwise provided in this paragraph (c), a business entity that has a single owner and is not a corporation under paragraph (b) of this section is disregarded as an entity separate from its owner.

Seems all you need to do is read that Paragraph (c), that "otherwise provided" stuff, to see if a disregarded entity can have a year-end that differs from the owner. You'll likely conclude as MassTaxPro has.

So do you just take the half of the two fiscal years and put that on the 1040?

Another way of saying that is that you ignore the fiscal year and do everything on a calendar year. The fiscal year-end is a fiction and should be disregarded. Keep the books on a calendar year. Why a DE with a rental property would have a fiscal year-end is beyond me. Furthermore, how exactly did he achieve a fiscal year-end - does he have a fiscal year-end just because he said so? Or did he put it down on the SS-4? If he did, it can be disregarded as a big nothing, unless of course, there's something in that "otherwise provided" language, which I didn't bother to read.

a single member LLC... has a June-July fiscal year

No it doesn't, at least not for tax purposes (unless the LLC elects to be taxed as a corporation). As a disregarded entity, the LLC can not use an accounting period different from the individual. Pub 538 says, "If you file your first tax return using the calendar tax year and you later begin business as a sole proprietor... you must continue to use the calendar year unless you obtain approval from the IRS to change it."

How did he allocate income/expenses last year?

So do you just take the half of the two fiscal years and put that on the 1040?

No. You take the actual income and expenses for the calendar year.