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brandoncuvelier
New Member

I started a Sole Member LLC in 2016 and purchased a Residential Rental property in that business name. How do i claim that on my taxes? Under schedule E or C?

I've noticed many comments say this would be reported under Schedule C but would that be true since Rental income is reported under Schedule E? My concern is when applying for mortgage loans they look for 2 years history in Rental income. If this shows up as Schedule C income versus Schedule E it's not going to show as rental income like it does for my other properties that aren't in the Sole Member LLC.
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Accepted Solutions
TaxGuyBill
Level 9

I started a Sole Member LLC in 2016 and purchased a Residential Rental property in that business name. How do i claim that on my taxes? Under schedule E or C?

It goes on Schedule E.

A Single Member LLC that has not made an election to be taxed as a corporation is a "disregarded entity".  That pretty much means you ignore that the LLC exists (for income tax purposes).  Because you ignore the LLC exists, you treat it as any other rental property, so it goes on Schedule E.

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6 Replies
kywonderers
New Member

I started a Sole Member LLC in 2016 and purchased a Residential Rental property in that business name. How do i claim that on my taxes? Under schedule E or C?

You are an LLC and file Sch E page 1.   Refer to Instr for Sch E page E-1
TaxGuyBill
Level 9

I started a Sole Member LLC in 2016 and purchased a Residential Rental property in that business name. How do i claim that on my taxes? Under schedule E or C?

It goes on Schedule E.

A Single Member LLC that has not made an election to be taxed as a corporation is a "disregarded entity".  That pretty much means you ignore that the LLC exists (for income tax purposes).  Because you ignore the LLC exists, you treat it as any other rental property, so it goes on Schedule E.

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Kpriya
New Member

I started a Sole Member LLC in 2016 and purchased a Residential Rental property in that business name. How do i claim that on my taxes? Under schedule E or C?

We have a single member LLC with only rental property and have to issue a 1099-Misc to a contractor for work.  We file Schedule E and do not get taxed as a corporation.  Does the 1099-Mis issuer have to be the LLC under it fein or can it be issued by the sole member under his SSN?
Kpriya
New Member

I started a Sole Member LLC in 2016 and purchased a Residential Rental property in that business name. How do i claim that on my taxes? Under schedule E or C?

Also, where do I mail the 1099-Misc to IRS and how much penalty do I have to pay.  I read somewhere that the penalty is $50 (not for 2016 but for some prior year).  I was not able to find the penalty amount for 2016.  Thanks in advance.
TaxGuyBill
Level 9

I started a Sole Member LLC in 2016 and purchased a Residential Rental property in that business name. How do i claim that on my taxes? Under schedule E or C?

I would use the EIN.  Both would work, but I would avoid giving out my Social Security number to anybody that does not need it.

If it is filed by August 1st, the penalty is $100 (see first link).  See the second link for the address to mail it.
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-prior/i1099gi--2016.pdf#page=18">https://www.irs.gov/pub/irs-prior/i1099...>
<a rel="nofollow" target="_blank" href="https://www.irs.gov/pub/irs-prior/i1099gi--2016.pdf#page=7">https://www.irs.gov/pub/irs-prior/i1099g...>
Krishnapriya1
Level 2

I started a Sole Member LLC in 2016 and purchased a Residential Rental property in that business name. How do i claim that on my taxes? Under schedule E or C?

If you paid to an individual then the below may not apply.

 

Exceptions. Some payments do not have to be reported on Form 1099-MISC, although they may be taxable to the recipient. Payments for which a Form 1099-MISC is not required include all of the following.
• Generally, payments to a corporation (including a limited liability company (LLC) that is treated as a C or S corporation). However, see Reportable payments to corporations, later.

 

Reportable payments to corporations. The following
payments made to corporations generally must be reported
on Form 1099-MISC.
• Medical and health care payments reported in box 6.
• Fish purchases for cash reported in box 7.
• Attorneys' fees reported in box 7.
• Gross proceeds paid to an attorney reported in box 14.
• Substitute payments in lieu of dividends or tax-exempt
interest reported in box 8.
• Payments by a federal executive agency for services
(vendors) reported in box 7.

 

https://www.irs.gov/pub/irs-pdf/i1099msc.pdf

 

 

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