Fairfax, VA asked in Business Law and Tax Law for Virginia

Q: I own an LLC, and I have 2 houses which I leave for renting. How can I do taxes for my LLC? Thank you.

Do I need to put 2 these houses into my LLC, or I can leave them separated, and then I still can do taxes for my LLC?

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1 Lawyer Answer
D. Mathew Blackburn
D. Mathew Blackburn
Answered
  • Tax Law Lawyer
  • Englewood, CO

A: With no tax elections and no partners the LLC will be reported on Sch C.

The rental should be reported on Sch E if not actively managed or Sch C is actively managed.

If you put the rentals in your LLC you still file them on C or E based on active participation.

The difference is that active participation subjects you to SE tax passive does not, but passive losses are not allowed in excess of passive gains.

Whether or not the houses are in your LLC doesn't have an affect on the taxation, only liability issues and other matters of business law.

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