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Level 7
August 26, 2022
Solved

Rental LLC

  • August 26, 2022
  • 3 replies
  • 10 views

Client has two rental properties, and plans to put both in an LLC, sole member. Normally this is a disregarded entity. I want to urge her to put each property into a separate LLC. But if she puts them both into the same LLC, how do I keep the rental information separate on Sch E? Put cumulative amounts into one column? Delete the old rental depreciation I had in prior years? Or have her husband as co-owner, so I could file the rentals separately on Form 8825. So far in 2021 (she filed an extension) she put just one into the LLC, so I can probably handle it in 2021.

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Best answer by TaxGuyBill

@Greta wrote:

 this is a disregarded entity.


 

Do just that.  Disregard it.  Enter it as two properties owned by one person.

3 replies

Level 15
August 26, 2022

@Greta wrote:

 this is a disregarded entity.


 

Do just that.  Disregard it.  Enter it as two properties owned by one person.

GretaAuthor
Level 7
August 26, 2022

In two separate columns on Sch E, use actual street address, no EIN or LLC indicated?

IRonMaN
Level 15
August 26, 2022

Correct 

Slava Ukraini!
BobKamman
Level 15
August 26, 2022

What law school taught you to choose two LLC's?  

(Obviously, not one in California.)

Level 2
August 31, 2022

It seems to me recommending a Single Member LLC as an entity is a legal question due to the difference in possible available creditor remedies between a Single and Multi-member LLC. Be careful.