property in llc

Forum|Forum|2 years ago
March 12, 2024
1 reply
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I own a property in an LLC that my mother lives in for free. I pay taxes and HOA fees. There is no mortgage. I haven't taken any deductions in the past 4 years and wonder if I can deduct taxes through the LLC. It's never been put into service.

mglauner

Single member LLCs are typically treated the same as sole proprietorships. The IRS disregards the LLC entity as being separate and distinct from the owner.

Essentially, this means that the LLC typically files the business tax information with your personal tax returns on Schedule C. The profit or loss from your businesses is included with the other income your report on Form 1040. However, it sounds like you would have no income, only expenses for your LLC Business at this time, although you can still file a Schedule C to report them.

Here's more info on Reporting Business Income and Expenses.

@chris_balt

chris_baltAuthor

I do understand all of that. My question is simply can a property in an LLC that is NOT intended to be a rental, deduct property taxes on the Company's filing (and which passes through to my personal return)? Can I consider it a second home if my mother lives in it?