Rental property LLC question

[ZSha]

Hi everyone.

I purchased a rental property in 2021. Later in 2021, the deed was transferred to an LLC (based out of Delaware).

The questions i have are

1. Do I report this as "rental income" in the turbotax self employed? Or do i report it as an LLC with income and business expenses?

2. Can i deduct closing costs?

2. My income is basically the rent i get. Will the business expenses be the mortgage payments for year 2021?

3. Can i deduct the mortgage interest paid? Or is that only for personal property?

4. Can someone explain how I can make use of depreciation? Its my first time with a rental property.

Thanks.

[ColeenD3]

1. Do I report this as "rental income". You report the rental income on Schedule E. The fact that you have an LLC does not make this a business.

2. Can I deduct closing costs? No, they are added to the basis of the property.

3. Can I deduct the mortgage interest paid? Yes, on Schedule E.

4. Can someone explain how I can make use of depreciation? Enter the property in the Asset section of Schedule E. The property will be depreciated over 27.5 years. You will have to separate out the land costs.