TroyBoy2345
Returning Member

Title of rental property (not the mortgage) is under an LLC partnership. How to file taxes?

Greetings, my business partner and I have an LLC partnership.  The title of our rental property is under the LLC, however the mortgage is assigned to us personally.  Because we have a partnership, I know that filing a 1065 K-1 for each of us is required.  However, I have the following questions:

 

1) Do we report the rental property income/loss on Schedule E even though the title of the property is under our LLC? 

 

2) Do we report the rental property income/loss on the 1065 K-1?  If so, do we put this number on Part III: Line 2:  "Net Rental Real Estate income (loss)"?

 

3) Do we record the income/loss on both Schedule E and 1065 K-1 Part III:  Line 2? 

 

4) Do we not use Schedule E and instead use Form 8825?

‎February 2, 2021 1:27 PM
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tagteam
Level 15
Level 15

Investors & landlords

You report the rental income and expenses on Form 8825 in connection with the LLC's 1065. 

 

You might want to seek professional tax guidance if this is your first year and you have little or no experience with pass-through accounting and taxation.

‎February 2, 2021 3:47 PM
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Rick19744
Level 13
Level 13

Investors & landlords

As noted by @tagteam, you definitely need to seek some professional assistance.

You have a definite issue with the building title in the name of the LLC and the mortgage at the individual level.  This is not a good situation.

*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
‎February 2, 2021 5:04 PM
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