Llc

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  • gman
    Senior Member
    • Dec 2005
    • 676

    #1

    Llc

    Father dies and leaves home and land to chilren. Children form an LLC with House and land in it. Livestock on land, so there is Income and Expense for a schedule F.
    What expenses relating to the home could be deducted? House is vacant, but children stay there a couple times a year
    when checking on livestock.
    Water and Electric on one meter for barn and house.

    thanks
  • ATSMAN
    Senior Member
    • Jul 2013
    • 2415

    #2
    I would figure out the percentage for business use and then multiply the percentage to the amount of total expenses to determine the portion you can deduct.

    This assumes that the owners of the LLc do not live nearby and would have to rent a hotel room to check on their farm if they did not have that house on the property?
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

    Comment

    • Gary2
      Senior Member
      • Aug 2010
      • 2066

      #3
      Is there any personal use of the property? Who manages the livestock when the children aren't there?

      Comment

      • ATSMAN
        Senior Member
        • Jul 2013
        • 2415

        #4
        Good question. I am assuming there are hired hands taking care of the livestock?
        Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

        Comment

        • gman
          Senior Member
          • Dec 2005
          • 676

          #5
          hired hand

          Yes, they pay someone to feed and check on livestock. Closest child lives 200 miles away. Just wondering what is deductible regarding the house.
          Property tax, insurance, repairs???

          Thank you

          Comment

          • ATSMAN
            Senior Member
            • Jul 2013
            • 2415

            #6
            Same expenses that you would deduct in a rental situation. Except in this case apply the business use percentage.
            Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

            Comment

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