LLC Rental Property

[Burke]

I have read the formerly posted thread about Husband and Wife LLC. The discussion applied only to a business, owned and operated by H&W and SE tax. What about an LLC formed to own a rental property. Only one will actually participate. Other spouse only has name on property deed and mortgage. Sche E or 1065?

[Jesse]

I saved these links in case I would come across the situation. It makes for some thoughtful discussion and if nothing else will bump your thread back to the top.

http://www.thetaxbook.com/forums/showthread.php?t=11279&highlight=Community+property+election

http://www.taxalmanac.org/index.php/Discussion:Husband/wife_members_of_LLC

http://www.irs.gov/businesses/small/article/0,,id=177376,00.html

[Lion]

Llc

A multiple member LLC files as a partnership unless they have elected to be taxed as a corporation. A solely owned rental property reports on Schedule E. Apples and oranges.

[Gretel]

I believe that unless permitted by the state and a PLR is requested, a multi-member rental LLC always needs to file form 1065.

[Burke]

A multiple member LLC files as a partnership unless they have elected to be taxed as a corporation. A solely owned rental property reports on Schedule E. Apples and oranges.

That's what I thought too. Just needed verification.

[Burke]

I believe that unless permitted by the state and a PLR is requested, a multi-member rental LLC always needs to file form 1065.

What is a PLR?

[Gretel]

PLR = privat letter ruling

see Rev.Proc. 2002-22

[Burke]

I saved these links in case I would come across the situation. It makes for some thoughtful discussion and if nothing else will bump your thread back to the top.

http://www.thetaxbook.com/forums/showthread.php?t=11279&highlight=Community+property+election

http://www.taxalmanac.org/index.php/Discussion:Husband/wife_members_of_LLC

http://www.irs.gov/businesses/small/...177376,00.html

Thanks for the links. The first one from TTB was the one I read. I have printed them all. My next question is, how do you save these links and/or import them into another post? I see posters do this all the time, but can't figure it out.

[Jesse]

There might be an easier way, but I highlight the "http://WWW. address bar", right click, select "copy", then paste to where you want to save the address.

I have a word document I copy and save the links, when I want to access in word press the ctrl button and click w/mouse takes you right to the saved site.

[Jesse]

I have read the formerly posted thread about Husband and Wife LLC. The discussion applied only to a business, owned and operated by H&W and SE tax. What about an LLC formed to own a rental property. Only one will actually participate. Other spouse only has name on property deed and mortgage. Sche E or 1065?

I'm thinking out loud as I sometimes get myself confused with so many lawyers seeming to suggest the forming of the LLC's.

I'm assuming the purpose of the LLC is to limit liability, so wouldn't you need the LLC to be listed on the deed? Or what would be the purpose of forming an LLC? It just seems the apples and oranges are being mixed?

[Burke]

Yes, and that is what he will do. He will transfer the property via deed to the LLC, and it will be the future owner.

[Burke]

There might be an easier way, but I highlight the "http://WWW. address bar", right click, select "copy", then paste to where you want to save the address. I have a word document I copy and save the links, when I want to access in word press the ctrl button and click w/mouse takes you right to the saved site.

Okay. I understand the saving part, etc., but am a little vague on how you retrieve it?