Does my rental property LLC need to file federal and/or Indiana state taxes?

[boxwood4107]

I have a rental property in a LLC and there is an additional investor and the investor got paid from the LLC based off their investment. Does the LLC need to file federal and Indiana state taxes itself or do I include the rental property in my individual tax filing? Is a 1099-INT or 1099-MISC necessary?

[PatriciaV]

How many owners of the LLC? Did you made any tax elections when you formed the LLC?

[boxwood4107]

The LLC has one owner. The investor does not own any part of the LLC, just supplied a capital investment and received x% in return.

[PatriciaV]

The investor "received x% in return" - percentage of what? Was that investment considered a loan or was it equity? If equity, then the investor is an owner.

[Carl]

If the investor injected "any" capital into the rental business, then that investor "is" an owner. Just not in the traditional sense. From what I can fathom, this is not being operated like an LLC or a partnership. It sounds to me more like an S-Corp where your investor owns shares in that business.

you *REALLY* need to seek the advice of a tax professional in your local jurisdiction. Taking advice from this public user-to-user form for your specific situation could come back and bite your wallet BIG TIME in the future, if/when the IRS audits this. If things look questionable, and it *will* look questionable if you file this as a single member LLC or partnership, the IRS will come a knocking about 18-24 months down the road.