Discussion:LLC Investment property
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Revision as of 12:34, 12 April 2009 Bjeter (Talk | contribs) (I would take the) Next diff → |
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| + | {{ForumReplyPost|UserID=Bjeter|Date=12 April 2009|Text=I would take the mortgage interest and taxes on Sch. A until the client either actually starts renting the property (or holds them available for rent) or he disposes of the property. You could also elect under §266 to capitalize the interest and taxes until the client makes up his mind. You may find this to be a better result for the client in certain circumstances. }} | ||
Revision as of 12:34, 12 April 2009
Discussion Forum Index --> Basic Tax Questions --> LLC Investment property
Discussion Forum Index --> Tax Questions --> LLC Investment property
| 12 April 2009 | |
| Need some guidance on how to report this. Client owns 3 houses: one is primary residence, second is former primary residence, and third is investment/rental property. The second and third houses have never been rented and have been under renovation and are not available for rent. Client keeps changing mind about intention of properties, at first he wanted to rent them out and now he is planning on selling them, but you never know, he could end up gifting to children. Prior to 2008, carrying charges such as property taxes and mortgage interest were reported on Schedule A. During 2008, the client placed the second and third properties into a single member LLC (primary for liability protection of their primary residence in the event someone slips & falls on the other properties). So, how would you report the properties for 2008? Would you report on Schedule E to establish the existence of the LLC? There's no rental income and the only expenses are property taxes, mortgage interest and renovation costs. I've come to the conclusion based upon reading other threads that the renovation costs should be capitalized, but am up in the air about how to report the property taxes and mortgage interest. The former primary residence is still used as a second home occassionally. Any advice would be appreciated. | |
consumer post removed
| 12 April 2009 | |
| I would take the mortgage interest and taxes on Sch. A until the client either actually starts renting the property (or holds them available for rent) or he disposes of the property. You could also elect under §266 to capitalize the interest and taxes until the client makes up his mind. You may find this to be a better result for the client in certain circumstances. | |
