AliciaP1
Expert Alumni

Investors & landlords

As a single-member LLC, which is a disregarded entity as you say, you should report the income and expense based on the IRS suggestion:

 

Generally, Schedule C is used when you provide substantial services in conjunction with the property or the rental is part of a trade or business as a real estate dealer.

 

The IRS defines "providing substantial services" as services that are primarily for your tenant's convenience, such as regular cleaning, changing linen, or maid service.

 

If you are renting the properties out and only provide basic services such as heat and light or trash collection, you would report your income and expenses on Schedule E, Part I.

 

If your LLC is not in the business of a real estate dealer, then you would need to report on a Schedule E only.

 

For more information please see page 12 of Publication 527 regarding Reporting Rental Income, Expenses and Losses.

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