Client has 2 LLC's. They are both taxed as partnerships and have been formed for the purpose of handling rental property. Each LLC has 1 rental property in it.
LLC #1 has a house with husband and wife as equal partners/ owners. They are actively involved in the management of the property. They do have a management company that collects the rent.
LLC#2 has a condo with husband as one partner and another man as the other partner. They again are actively involved in the management of this property, even though a management company collects the rent.
Every year I look this up and then forget when the next year comes around. I would consider them as marterially participating in the LLC/ rental activities. In this case,they are allowed to take their losses. Am I correct in my thinking?
I should mention that their AGI is over $200,000 per year from W-2 income alone.
Thanks for your help.
Linda F
LLC #1 has a house with husband and wife as equal partners/ owners. They are actively involved in the management of the property. They do have a management company that collects the rent.
LLC#2 has a condo with husband as one partner and another man as the other partner. They again are actively involved in the management of this property, even though a management company collects the rent.
Every year I look this up and then forget when the next year comes around. I would consider them as marterially participating in the LLC/ rental activities. In this case,they are allowed to take their losses. Am I correct in my thinking?
I should mention that their AGI is over $200,000 per year from W-2 income alone.
Thanks for your help.
Linda F