single-member LLC where to enter personal investment

[pgarora]

I started my LLC last year to do some real-estate investing. I made capital contribution from my personal funds to buy a real-estate property under the name of the LLC I opened. Where do I enter my initial investment in Turbotax and address of the property bought?

[Vanessa A]

You do not enter your investment if you are a single member LLC.  A single member LLC is a disregarded entity for tax purposes.  This means your real estate investment is treated the same as if you never created the LLC. 

When you purchase the property you will enter the property as an asset and then depreciate it. 

[pgarora]

Thank you. I opened the LLC in July and purchased the property (condo for renting) in August. Where do I enter that information on the property I purchased (?asset)?

I was not able to rent the condo till Feb this year. So I have no rental income from the last year.

[GeorgeM777 · Accepted solution]

You will enter your property information in the Property Profile category of TurboTax.  In TurboTax CD/download, you access Property Profile by selecting Business, then Business Income and Expenses, then Rental Properties and Royalties.  Over more than several screens you will enter some basic information about your property and your involvement in the rental business.  Then you will see a Review of Rental Summary screen where you can select Property Profile and begin to enter more specific information about your rental.

Even though you did not rent your condo in 2022, if you made it available for rent then you can begin to deduct your rental expenses for 2022, including depreciation, even though you did not have a tenant.  An important point to remember about rentals is the date the rental unit is available for rent.  That becomes the date from which you can begin to deduct expenses.  If the condo was not available for rent until 2023, then 2023 is your start date for deducting expenses.

In TurboTax online, the process is similar.  From Wages & Income, scroll down the screen and under Rentals, Royalties, and Farm, select Rental Properties and Royalties.  From that point, you will enter the basic information about your rental.  On the rental property info screen, is where you can select various options relating to your condo such as, general information, rental type and usage, and owner information.  

@pgarora 

[Carl]

All responses seem to leave out one very important bit of information.

If this is a single member LLC and not a multi-member LLC, partnership or corporation, then absolutely nothing what-so-ever concerning the rental property will be entered on SCH C, unless you qualify as a trade or business. With only one rental property, I seriously doubt it qualifies as a trade or business. (it's possible. But based on the information provided, I doubt it.)

All income and expenses for long term residential rental real estate is entered on SCH E. Not SCH C (unless you qualify as a trade or business.)

A fair amount of short term rentals (such as VRBO or AirB&B) also do not qualify as a trade or business.

https://www.irs.gov/charities-non-profits/trade-or-business-defined