I'm doing a couple of returns and have run into a conundrum.
My clients (husband and wife) run an LLC with her father (varying interests in llc - I think 35%, 35% and 30%).
In 2006 they purchased a property , I believe in all 3 of their names. The LLC runs its business out of this property. Can the indviduals lease this property to the LLC or would that be considered self-rental? I'm thinking they can as the property is co-owned but not an LLC asset.
The LLC haasn't been making rent payments, but does make the payments on the mortgage. I haven't seen the closing documents yet to verify title.
Carolyn
Still working on 06 returns yikes!
My clients (husband and wife) run an LLC with her father (varying interests in llc - I think 35%, 35% and 30%).
In 2006 they purchased a property , I believe in all 3 of their names. The LLC runs its business out of this property. Can the indviduals lease this property to the LLC or would that be considered self-rental? I'm thinking they can as the property is co-owned but not an LLC asset.
The LLC haasn't been making rent payments, but does make the payments on the mortgage. I haven't seen the closing documents yet to verify title.
Carolyn
Still working on 06 returns yikes!
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