I have a client who created an LLC and bought 2 rental properties. He is not a real-estate agent. Should the rentals go in a schedule C or schedule E?
Thank You
Thank You
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Is it a SMLLC? If so, where ever you would put them if the LLC did not exist and he owned them directly. Schedule E. Unless he provides significant services, such as a hotel, then Schedule C. By the way, did the LLC buy the 2 rental properties? -
Ther is only one person in the llc. The LLC purchased the rentals according to the management statement. So, I should include that on a schedule C instead of separate schedule E's for each rentals
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So if I do a schedule C he will be subject to self-employment tax as apposed to a schedule E with capital gaines.Comment
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How are the rental units used? Normal yearly leases or an AirBnB type operation?Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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I didn't say C. I said if they are NOT hotel-type rentals with substantial services they are NOT C. Schedule E. What type of rentals are they? Leases? Short-term? Room with breakfast served? Now you mention Management. Is the LLC managing rentals? Or, does the LLC own rentals? TTB tab 7 covers rentals.Comment
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