Rental Property LLC

Forum|Forum|1 year ago
December 29, 2024
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Should one who has three rental properties in three separate LLCs be filing using the Schedule E or is there a separate filing process for example a S-Corp's 1120-S?

I was recently told that if I have a LLC that I should be getting a K-1 as LLCs are audited less than 1040s. Any truth to this?

The Schedule E only asks for addresses and not LLCs so from a tax perspective I don't see the benefit of the LLC. Thank you.

TurboTax Home & Biz Windows

Mike9241

sch e as long as they are single member LLC's that did noy elect corporation taxation. an S-corp, in my opinion, is the worst entity to hold rental real estate. My reason is that mortgages do not count towards tax basis for the shareholders and therefore if there are losses, their deductibility might be limited

there is no k-1 for a single member LLC that is not an S-corp.

mgc6288Author

My apologies, the S-Corp was just as an example as I also run a S-Corp where I file a 1120-S and was wondering if there was a similar form I should be filing for my LLCs.

I suspect the LLCs did not elect corporation taxation. However is it more wise to set them up in a different manner to minimize audits? Would electing a corporation taxation be better?

We all try to do the right thing but the IRS always seems to be the exception of claiming we are guilty until proven innocent.

Mike9241

for the best tax planning see a tax pro. besides your rental properties they're going to want to know your entire tax picture to give you the best advice.