,I have a client that has quite a few rentals. All but one , which is new as of 6/2018, is on schedule E of the personal 1040. The new one (which is also an LLC with state of SC, I know no tax relationship there just info), in error by him and those helping with the purchase, was started as a partnership. Yesterday he informed me he has now put All properties into a trust. My question: is there anyway to get the new one tax wise into the trust without completely closing it. He does not want to go through the process of the LLC, new FID# and what ever may be involved. I have looked over form 8832 and I see only 3 possible changes nothing about changing classification to a trust, unless a disregarded as a separate entity would but I can't really see that. Sure could use some help here. Thanks
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Why not put the trust in the LLC? That being said, I think an umbrella policy is better than an LLC for liability"Dude, you are correct" Rapid Robert -
Thank you sounds good to me problem at this moment have no idea what he has done, what kind of trust etc. He just called said he had attorney put all the properties in a trust. Have not seen any paper work yet.Comment
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I have dealt with the 8832 for LLC's but not Trusts. First step would be to determine if it is a QSST or ESBT
https://www.irs.gov/pub/irs-drop/rp-13-30.pdf
Second is to clarify if the LLC should actually be classified as a partnership.
The single property LLC puts a cumbersome fly in the ointment. That LLC may have to first use form 8832 to be treated as an S corp to qualify as QSST or ESBT.
Last edited by Dude; 07-26-2019, 02:00 PM."Dude, you are correct" Rapid RobertComment
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Thanks again, looking at these pubsComment
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