In 2006 client purchased commercial building (small shopping center) with six units. All six units are rented out to retail businesses. Client organized as an LLC and the commercial building is the only asset owned by the LLC. The LLC's only source of revenue is rent income from the six units. Should the LLC tax return include the form 8825 for rental activites OR should the income and expense be reported on page 1 of Form 1065? Also, the LLC earned a profit for 2006 - are these profits subject to self-employment tax since this is rental activity? Seems that using the Form 8825 would force the profits to go to Line 2 on Schedule K, thus shielding the partners from self-employment tax. Any thoughts?
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Don't overthink this..
[QUOTE= All six units are rented out to retail businesses. ....The LLC's only source of revenue is rent income from the six units. [/QUOTE]
the IRS put the 8825 rental form there for a reason. Use it! -
Prior Discussion
This might help you. Here is a link http://www.thetaxbook.com/forums/sho...ental+property
SandyLast edited by S T; 03-25-2007, 04:14 AM.Comment
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