Yes I am sneaky. I find it better to have people think I am a total newbie when asking questions. Otherwise they may assume I know something that I might infact not know .
Thank you Carl that is very informative and very helpful. I plan on keeping the five properties I currently have in my personal name.
They have no relationship to the partnership and never will. The property the partnership has, and the properties it is going to buy, have seperate accounts. The mortgages are in the name of the LLC but are personally guaranteed by my partner and using our socials.
The partnership was started 2 months ago we have one property and are acquiring a second right now (offer accepted). We plan to acquire 6 to 8 more within the next 10 months.
We probably won't take any distributions the first couple of years as all monies will be reinvested.
I am assuming that the EIN which I filed for is completely unrelated to the partnership, but that might be a bad assumption? I filed for it specifically for the properties I own in my own name. My thought is that I won't need to use the EIN on any of my taxes anywhere and my social security number will be used everywhere?
But like I said I haven't filed taxes with the partnership before so I don't know if maybe some tax forms for the partnership will require my EIN. I would imagine if I use my social security number everywhere in the partnership and don't use my EIN then i wont use the EIN on my taxes.
When I acquired my EIN I checked for banking purposes only on the SS-4 form.
I am usually excited to file taxes it is quite enjoyable to see the ins and outs of the IRS tax code. I get the feeling taxes for this year are going to be quite overwhelming, having a partnership and an EIN, however I still prefer to file myself. (Well turbo tax is a huge help).
I am glad I got your interest with this conversation because I could always use some good learning :-).
I don't meet the real estate professional status yet, I am a software engineer full time. Still I can take up to 25k from real estate losses against my normal income which is all I need so far:) (of course this is if income is under 100k then it phases out up to 150k). In a couple of years i will becomes a real estate professional though.
