RE: [taxchat] Rental property in LLC

Lynne,

 

When your husband/wife clients created an LLC for their rental, I assume that they applied for an EIN for the LLC?  If so, were both spouses listed as members?  And if that is true, I would assume they classified themselves as partners?  And had to file a 1065?

 

You mentioned sole prop.  If that was the case, then only one spouse was listed on the LLC?

 

 

 

Donna J. Perrone, EA

East Haven, CT

203-469-4939

203-468-2038 fax

 

 

IRS Circular 230 Disclosure: Unless expressly stated otherwise, any tax advice contained herein, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax-related matters addressed herein.

 

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From: taxchat@yahoogroups.com [mailto:taxchat@yahoogroups.com] On Behalf Of Lynne Ayton
Sent: Monday, November 03, 2008 8:14 AM
To: taxchat@yahoogroups.com
Subject: Re: [taxchat] Rental property in LLC

i have clients who have rentals & put every one in an LLC (sole prop) for the protection.  they are in separate LLC's so the only asset is the 1 property.
lynne


Donna J. Perrone wrote:

The attorney in my BNI group referred a new client to me a couple of months ago.  Last week she told me that the couple, both physicians, had purchased a rental property and that she formed an LLC for them.  She was going to put the rental property into the LLC. When I asked her why she formed the LLC, she said to give them a layer of protection. I said don't do anything until I check out a few facts regarding this.

 

The more experienced folks on this list always say to never put property into a corporation.  Now, they will have to pay the annual LLC fees to the STate of CT, and also file a 1065 for the rental....both costing the clients more money.  Does anybody see any problem by putting the rental into the LLC's name? 

 

thanks,

Donna

 

 

Donna J. Perrone, EA

East Haven, CT

203-469-4939

203-468-2038 fax

 

 

IRS Circular 230 Disclosure: Unless expressly stated otherwise, any tax advice contained herein, including attachments and enclosures, is not intended or written to be used, and may not be used, for the purpose of (1) avoiding tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax-related matters addressed herein.

 

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IRS Circular 230 Disclosure: Unless expressly stated otherwise in this transmission, any tax advice contained herein, forwarded with or attached to this message was not and is not intended to be used, nor may it be relied upon or used, by any taxpayer for the purpose of (1) the avoidance of any tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions, or (2) promoting, marketing or recommending to another party any tax transaction or tax-related matters that may be addressed herein.

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