Tax Question, LLC - Posted by ED

Real Estate Investing
1

Posted by Jeffrey Short on March 30, 2000 at 07:06:06:

I am not a CPA, though I have passed the exam…

  1. If you had the rental in Jan/Feb (which it sounds like you did), then your approach is correct. You acted as a sole proprietor in the first 2 months of 99… then formed an LLC in March.

  2. I think that the best way to treat this is as a partner contribution. You didn’t initally treat this as a loan (promissory note and payments), so most people would look at this as you “invested” money into the LLC which lead into the buying of an asset…namely the home.

Of course, I could be wrong…

2

Tax Question, LLC - Posted by ED

Posted by ED on March 29, 2000 at 15:11:10:

  1. LLC started in Mar 99, so do I claim 10 months of rental expenses on form 1065 and 8825, and 2 months on 1040 sch E.

2)Have a line of credit on personnal residence, use money to buy or fix-up rentals owned by LLC, I pay interest on that loan, and report on sch E, but is the money also a loan to the LLC and do I charge interest, or is it a partner contribution and then would be a loss on sch E and sch K.