Hello,

I opened a company (real estate buy n flip) in 2016 with some other partners. We invested money and bought a property. However as of dec 31, it was not sold. We sold it a month ago. My question is - on my personal tax return which is normal W2, do I have to report anything about the company? If not do I have to file any tax related item with IRS even though we didn't make any money last year? The company is based in Texas.

Thanks for your help.

You are filing on a CASH basis, so you deduct all of the expenses on the partnership, and those losses "passes through" the partnership to the partners via the Schedule K-1.

The income on the sale of the property will be reflected on the 2017 partnership return.

Thank you AtlantaTaxExpert.I understand the part where we need to file company taxes next year since we made income this year.however for this year, I'm a little confused. When I file my 1040 (for my regular w2) for 2016, do I need to indicate that I had a company in 2016 even though I only invested money in it and did not make any income? If so, how do I do it?Thanks.

The fact that you are a partner in a company will be shown on Page 2 of Schedule E. That form is generated as a result of the data from the Schedule K-1 from the partnership.