hello @taxmodern . thank you for answering our questions.
1. yes we do use it for personal use, usually less than 14 days per year but never more than 10% of the actual rental days via Airbnb.
2. my spouse (domestic partner actually ...we file separate individual returns) are both members of the LLC. we file a 1065 tax return each year.
- a) the 1065 is almost completely blank. the only real numbers are put on form 8825 where we list gross rents and all the expenses.
- b) the only numbers put on the 1065 is the LLC lic fee I put on line 14 and the net rental income/loss from 8825 that i put on line 2 of the sch K
- c) then i create 2 K1s for each of us 2 members that we then will use on our individual tax returns (for net income or loss) . I dont pay any tax with the 1065
3. my main quesitons are 1. are we filing the forms properly and 2. if we say we materially participate and are general partners (so that we can deduct net rental loss against earned income on our individual returns), are we at any risk of owing self employment tax ?
