Discussion:Short Sale, Rental Property, & LLC

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Kevinh5 (Talk | contribs)
(uh, who puts a r)
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Harry Boscoe (Talk | contribs)
(IIRC, a husband-)
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{{ForumReplyPost|UserID=Kevinh5|Date=1 November 2009|Text=uh, who puts a rental property on Sch C?}} {{ForumReplyPost|UserID=Kevinh5|Date=1 November 2009|Text=uh, who puts a rental property on Sch C?}}
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 +{{ForumReplyPost|UserID=Harry Boscoe|Date=1 November 2009|Text=IIRC, a husband-and-wife LLC rental property has only one choice: Form 1065.}}

Revision as of 23:16, 1 November 2009

Discussion Forum Index --> Advanced Tax Questions --> Short Sale, Rental Property, & LLC
Discussion Forum Index --> Tax Questions --> Short Sale, Rental Property, & LLC

SoCalEA (talk|edits) said:

30 October 2009
Hello,

I have a client with a rental property in an LLC. The property has been rented for a few years, but now he needs to short sale it. In order to do so, he has to take the property "out" of the LLC because the loan is in his name personally. I assume that this will not be an issue, but I am looking for a nudge in the right direction. Would I just sell the property on his personal taxes and input all of the prior deprecation, etc...? Will the IRS question why this rental was not reported on his personal return before? Thanks for the help.

R2 (talk|edits) said:

30 October 2009
How many members in the LLC?

SoCalEA (talk|edits) said:

1 November 2009
Single member LLC in California.

R2 (talk|edits) said:

1 November 2009
Taking property out of a SMLLC has no tax effect.

SoCalEA (talk|edits) said:

1 November 2009
I forgot to mention that it is husband/wife and they have been filing a 1065. From what I have read, they have the option of filing a 1065 or schedule c. So I guess that it may or may not be a single member LLC depending upon how you look at it.

Kevinh5 (talk|edits) said:

1 November 2009
uh, who puts a rental property on Sch C?

Harry Boscoe (talk|edits) said:

1 November 2009
IIRC, a husband-and-wife LLC rental property has only one choice: Form 1065.
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