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Help w/ Michigan Partnership Reporting

Connecto
Level 2

Hi all,

I have an Illinois resident who formed a Michigan LLC along with two Michigan residents to invest in rental property in MI.  In 2020 the profit from the rental is $8,000 of which 50% belongs to the IL resident.  MI does not require a tax return for the LLC so my client is going to get a Federal K-1 allocating him $4,000 of income which needs to be reported in MI.  However there is no MI K-1 or any reporting to that effect.  How would you guys handle this?  Proseries only has a module for "Michigan Business Returns" and it does not appear helpful in this context.  Thanks for any advice!

Mario  

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Connecto
Level 2

For additional context since I am preparing the IL resident's 1040 and know all the facts, I will file a MI return reporting his share of the income.  But what if he gave the K-1 to a new accountant?  How are they supposed to know this is MI income without any reporting to that effect?

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