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stanleyyan28
Level 1

"Premier" version for one-member LLC

I have a single owner LLC that only manages 2 rental property.  Is "Premier" good enough to use?  It generated the Schedule E for me in the past (no Schedule C).  I wonder if there would be any problem doing it and/or if I must get "Home & Business", given the fact that the IRS treats one-member LLCs as sole proprietorships for tax purposes.

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Accepted Solutions
MinhT1
Employee Tax Expert

"Premier" version for one-member LLC

You are correct.

 

Your single member LLC is a disregarded entity for the IRS and you can report all its income and expenses on your personal tax return.

 

As the LLC only has 2 rental properties, you would report rental income and expenses on Schedule E (and not schedule C). And TurboTax Premier is sufficient to do this. You do not need TurboTax Self-Employed.

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6 Replies
MinhT1
Employee Tax Expert

"Premier" version for one-member LLC

You are correct.

 

Your single member LLC is a disregarded entity for the IRS and you can report all its income and expenses on your personal tax return.

 

As the LLC only has 2 rental properties, you would report rental income and expenses on Schedule E (and not schedule C). And TurboTax Premier is sufficient to do this. You do not need TurboTax Self-Employed.

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Carl
Level 15

"Premier" version for one-member LLC

Since rental income is passive, absolutely nothing (not one single penny) concerning your rental income/expenses is reported on SCH C. It all goes on SCH E. So you'll be fine with the desktop version of Deluxe or higher, or the online version of Premier. So if rental property is the only thing managed by your LLC, your LLC has no need to complete or file a SCH C at all. It all goes on SCH E.

 

 

Fbs2021
Returning Member

"Premier" version for one-member LLC

So if I only use SchE, how do I writeoff my home office, car mileage, meals that my rental business LLC spends in SchE ?

Vanessa A
Employee Tax Expert

"Premier" version for one-member LLC

As you walk through all of the rental questions, there is a section for expenses.  After you enter your income you can click Add expense or asset to enter your mileage and other rental business expenses. 

Fbs2021
Returning Member

"Premier" version for one-member LLC

@Vanessa A 

 

And about the home office write-off, meals etc that the LLC incurred ?

The LLC acts as the property management company for my own rentals, it is the one receiving the rent payments, paying contractors, paying the business trip to the properties, meals, using my home office, computer, printer, etc. 

Since the rentals go in SchE, the LLC itself has no income to put on SchC to write off all these business expenses.

AmyC
Employee Tax Expert

"Premier" version for one-member LLC

You can use line 19 for other expenses to include those items. You will list each item and the amount.

 

See 

About Schedule E (Form 1040), Supplemental Income and Loss  &

Publication 527 (2020), Residential Rental Property - IRS

 

and use About Schedule C (Form 1040), Profit or Loss from Business  IRS. for the home office and other items that you are carrying to line 19.

 

 

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