Posted by Rich-CA on May 15, 2007 at 22:44:24:
I forgot to add. I got this from my CPA. I am not either a CPA nor attorney.
Husband Wife LLC - Disregarded or Partnership? - Posted by Ben - NY
Posted by Ben - NY on May 03, 2007 at 18:08:08:
From the searching I’ve done it appears as though there is no ruling by the IRS on whether an LLC owned by a husband and wife in a non-community property state can be treated as a disregarded entity.
My wife and I currently own one property through an LLC and are about to purchase 4 more properties, each through separate LLCs. If each LLC can be considered a disregarded entity then it will make things easy.
If not, I’m considering setting up a shell LLC that will be a partnership and then having that shell LLC be the single member owner of each of the other LLCs. My understanding is that we will just need to file one partnership return for the shell LLC and all the others will be considered disregarded entities owned by the shell LLC.
Can anyone comment on this strategy?
Thanks,
Ben - In NYC
Re: Husband Wife LLC - Disregarded or Partnership? - Posted by Rich-CA
Posted by Rich-CA on May 15, 2007 at 22:43:35:
If the state where you file income taxes is a community property state, then the status of states where you own the property does not matter. Its your state of residence that matters. For example, our LLCs are through Colorado, not a community property state but we live in CA, a community property state. The CA status determines our status.
Re: Husband Wife LLC - Disregarded or Partnership? - Posted by blogger
Posted by blogger on May 12, 2007 at 24:54:47:
IRS will treat H&W owned LLC as individual (disregarded entity for tax purposes)as H & W are treated as one “person”.
Re: Husband Wife LLC - Posted by Natalie-VA
Posted by Natalie-VA on May 06, 2007 at 13:50:05:
Ben,
I’m not an attorney or CPA. I can tell you that my husband and I keep our rental properties in an LLC and the income/losses are reported on schedule E of our personal income tax return. We do not live in a community property state.
Hope this helps a little.
–Natalie