Should I complete separate tax forms for my personal income tax and my airbnb property income and expenses?

Forum|Forum|3 years ago
July 12, 2022
2 replies
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I own 2 airbnb properties with my daughter and son-in-law so we split expenses and revenue. I think it will be difficult to separate the airbnb information from our personal income taxes. Should we form some type of LLC (or something else) and keep that separate from our personal finances?

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Best answer by Anonymous_

You should consult, in person, with a local tax professional and/or attorney for this matter.

See https://taxexperts.naea.org/listing/service/business-tax-preparation

Anonymous_Answer

Employee

You should consult, in person, with a local tax professional and/or attorney for this matter.

See https://taxexperts.naea.org/listing/service/business-tax-preparation

Carl11_2

Employee

More than likely, you'll want to form either a partnership or a multi-member LLC for this. Then a form 1065 partnership/multi-member LLC return would be filed. A K-1 would be issued to each owner which each owner would need to complete their own individual or joint 1040 tax return. You should seek professional help for the first year; especially if the state of any one of the owners taxes personal income.

Anonymous_

Employee

This is precisely why you need an in-person consultation with a local professional who can become familiar with your personal, financial, and familial situation, @nourdives.

"More than likely", you will not want to form a general partnership since each partner, unlike a member or manager in a multi-member LLC, is personally liable for partnership debts. There are also other business structures to consider beyond the aforementioned as well as estate planning factors.

Seek professional guidance for your scenario.