turbotax icon
turbotax icon
turbotax icon
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

LLC or Personal?

My husband and I purchased our first rental property in Texas. We also formed an LLC (with just us on it) to shield us from liability issues. We both work and receive W2s. Do I claim the rental property under our personal taxes? Or do I need to file taxes under the LLC?
Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

2 Replies

LLC or Personal?

If the LLC is a disregarded entity for tax purposes, you just claim the rental property income and expenses on your personal return using Schedule E.  If the LLC is treated as a partnership, then the partnership's return will provides the information on the property's income/expenses to IRS, and then you each get a schedule K-1 to use for paying the tax on your personal return.  If the LLC is treated as a corporation, then it depends whether it is an "S" or "C" corporation and gets taxed as a pass-thru entity or a separate entity, respectively.

LLC or Personal?

The default tax classification for a single member LLC is a disregarded entity. The default tax classification for a multi member LLC is a partnership. If you and your spouse are members of the LLC you are likely to file a partnership return. If only one of you owns the business than you can file a schedule E. I would not recommend electing to be treated as a corporation because of the issues with appreciated property distributions.

Use your Intuit Account to sign in to TurboTax.
By selecting Sign in, you agree to our Terms and acknowledge our Privacy Statement.
message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies