Posted by Jason on May 28, 2002 at 08:25:44:
Good idea. Thanks for the guidance.
LLC & Income Tax - Posted by Jason
Posted by Jason on May 27, 2002 at 05:49:01:
I have been told that the IRS income tax treatment is disregarded for a single-member LLC, meaning that the liability would fall on the individual member as if there was no existence of the LLC.
Could someone shed some light on this?
Re: LLC & Income Tax - Posted by KC Questions
Posted by KC Questions on May 27, 2002 at 17:50:37:
Report it on your tax return on schedule E, just like you did when the LLC didn’t exist.
Re: LLC & Income Tax - Posted by Dave T
Posted by Dave T on May 27, 2002 at 13:16:34:
You’ve pretty much stated the process in a nutshell. What is it you need clarified?
Re: LLC & Income Tax - Posted by Jason
Posted by Jason on May 28, 2002 at 06:43:15:
I was under the impression that operating under an LLC would provide a tax shelter. Is this true? Could you explain the benefits?
Re: LLC & Income Tax - Posted by Dave T
Posted by Dave T on May 28, 2002 at 08:08:44:
If you have a rental property titled in your name, you report your rental income and expenses on Schedule E and take your depreciation expense.
If your single member LLC holds the title to same rental property, all the income and expenses still “pass-through” to your personal tax return. You still fill out Schedule E as before as if the LLC did not exist.
Perhaps you are confusing “tax shelter” with “asset protection”. Suggest you visit the legal forum and read some of the articles posted by John Hyre and Bill Bronchick. They should clarify this issue for you.