Discussion:One member LLCs
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Discussion Forum Index --> Tax Questions --> One member LLCs
| 10 June 2006 | |
| I have a client that created two LLCs this year. One for the building see purchased and one for the Cafe she will participate in within that building. She is always worried about lawsuits.
She is the only member for both LLCs. I am going to use her Schedule C to prepare the Cafe profit and loss; however, the code states that you can not deduct rent on Schedule C if you own the property; therefore, I can't take a rent expense on Schedule C and include it on her Schedule E. I want to take the depreciation, real estate taxes, etc. on her Schedule C for the property considering the Cafe is in the building (no other tenants) and forget about the rent expense and Schedule E. The only question is the fact the building is an LLC going to create a problem? The code states that it is disregarded as an entity; therefore, it is part of the Cafe and I should be able to take the expenses associated with the commercial property. Please advise as to my approach. Thank you for the response! | |
| 11 June 2006 | |
| A couple of threads on this in just the past few days. Keep reading. But generally, you've got it. Disregard the LLC's. | |
| 12 June 2006 | |
| Yes, disregard LLC's. However, some states (like California) require you to file a partial LLC tax return (in California Form 568 pages 1 & 3) and pay the minimum LLC fee. | |
