Discussion:LLC - mortgage interest and property tax & loss on sale
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Discussion Forum Index --> Basic Tax Questions --> LLC - mortgage interest and property tax & loss on sale
Discussion Forum Index --> Tax Questions --> LLC - mortgage interest and property tax & loss on sale
| 2008-07-02 | |
| One of properties owned by an LLC was never rented or used as a residence then sold in a few months from the purchase.
If it was owned by individual, mortgage interest and property tax can be deducted on Schedule A, and loss on sale is not deductible. But, if owned by an LLC, how can I report mortgage interest and property tax & loss on sale on what section of Form 1065? | |
| 2008-07-02 | |
| Thank. Sch. K-1, Line 13(K) for mortgage interest and property tax.
Then what about loss on sale of the property? Scheduel D of 1065? Can the short-term capital loss be deductible, even if it was never rented? | |
| 3 July 2008 | |
| Was the property available for rent even though not actually rented out? | |
| 2008-07-03 | |
| Taxpayer was planning to rent. How does it make difference? How to report those different cases? Thanks. | |
Death&Taxes (talk|edits) said: | 3 July 2008 |
| By some chance, are the members of this LLC Husband and Wife? | |
| 2008-07-03 | |
| The LLC is owned by Husband and Wife, but the property was owned by H/W & another member. | |
| 3 July 2008 | |
| Hi okkkk the LLC is owned by H&W yet the property is owned by H&W&X maybe the questions facts should be restated and a new question asked now that the LLC doesnt own anything? love these questions typical. bye | |
| 2008-07-03 | |
| Well, to restate, The LLC is owned by Husband and Wife, and the property was owned by that H/W LLC & another member. | |
Death&Taxes (talk|edits) said: | 3 July 2008 |
| Eg: the property is owned by HW LLC and John Smith. | |
RoyDaleOne (talk|edits) said: | 3 July 2008 |
| Question 1, how many people are members of the LLC?
Question 2, in what name(s) is the legal title to the property recorded? Question 3, was there ever an attempt to rent the property? Question 4, at the time the property was purchased what was the intent of the owner(s)? Choose one: a. rent the property b. as an investment - no rental c. live in the property d. a. and b. e. b and c. f. don't know - but will find out g. don't care | |
| 3 July 2008 | |
| Why couldn't the loss on sale be deducted on a personal return if it was owned by an individual? The property was bought as investment property so you could claim the loss. | |
| 2008-07-03 | |
| Answers to RoyDaleOne's questions:
1: 2 members (H&W) 2: title (ownership) under the LLC 3: just considered renting. sold after several months. 4: primarily investment in appreciation, along with consideration of renting | |
RoyDaleOne (talk|edits) said: | 3 July 2008 |
| If not filing 1065:
Mortgage interest is investment interest - Form 4952 Taxes - Schedule A - Property held for investment (Should be an option) If sold for loss goes on Schedule D If filing 1065: Mortgage interest is investment interest - Schedule K Real Estate Taxes - Schedule K Other deductions - R/E Taxes Property held for investment (Should be an option) If sold for loss goes on 1065 Schedule D | |
| 3 July 2008 | |
| Very good discussion. I have some clients at this moment who may be entering the same minefield, I will definitely flag this particular question/discussion. | |
