I live in North Carolina. My wife and I purchased a cabin rental business and registered it with the Feds as a General Partnership. We own the RE and only use the partnership to run the business.
I am using TurboTax personal & for small businesses to prepare the 2005 taxes. I am treating the real estate as personal assets and showing no rental income or expenses. All income (or losses) would flow thru the partnership and be part of our K-1's. This would include all operation expenses associated with the real estate.
Does this sound like a reasonable scenerio? I understand, in retrospect, that this is not the best way to handle the business (too soon we get so smart) but, because of the way the EIN was issued, I am stuck with the partnership.
I am new to this whole thing. Any input is welcomed.