Discussion:1 individual 2 disregarded entities
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Discussion Forum Index --> Basic Tax Questions --> 1 individual 2 disregarded entities
Discussion Forum Index --> Tax Questions --> 1 individual 2 disregarded entities
| 26 January 2009 | |
| Looking at a past return, this individual is paying rent from his first disregarded LLC (Sched C1) to his second disregarded LLC (Sch C2). The second LLC is a construction company that built the building. This seems like a bozo no-no. Doesn't this fall under related party transactions? Am I missing something here? | |
| 26 January 2009 | |
| If the rental income is being reported on C2 then he's paying SE tax on it, right? Off the top of my head I don't think it's a big deal because the bottom line is the same. Now if the second disregarded entity were sch E then he'd be in trouble, but on sch c he's still paying SE tax. | |
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