Hello, I have a multi-member LLC with multiple rentals. I have annual overhead expenses such as the registration for the LLC, tax prep expense, etc. Can I just pick which property to assign these expenses to or must I divide them up or where do they go? The properties are in different states so maybe I take the expenses against the property in the state with the higheset state tax? I am using TT Business. Thanks for any advice!
Annual overhead expenses do not get prorated on the separate rentals as they are expenses of the business.
If you have not filled in a 1065 or 1120S before and you don't have a prior year return to use as a templet then I highly recommend you seek local professional assistance to get educated.
I have been told by a professional that I can just assign them to one of the rentals, but I would like to check that. Surely every investor with more than one property in an LLC faces this question so it must have a straightforward answer?