Posted by John K Haslach, CPA, MST on May 29, 2004 at 04:25:13:
It does not matter whether your SMLLC has an EIN or not. It is the nature of the income which determines where it is reported on your tax return.
If you are earing interest as a trade or business, the interest could be considered earned income. I could not tell you if there may be issues of being a “bank” of sorts, but it would be wise to research it.
LLC Tax Treatment - Posted by John Smith - VA
Posted by John Smith - VA on May 28, 2004 at 09:53:41:
Does in make any difference whether my single member LLC is set up with an EIN (rather than personal SSN) in terms of my tax filing?
My CPA seems to think that if my LLC has EIN, I will have to file schedule C rather than schedule E to report my real estate rental activities.
Thank you
John
Re: LLC Tax Treatment - Posted by John K Haslach, CPA, MST
Posted by John K Haslach, CPA, MST on May 28, 2004 at 14:52:06:
If you own rental real estate, the income and expenses are reported on Schedule E, regardless of whether you own it in a SMLLC or own it personally.
Re: LLC Tax Treatment - Posted by John Smith
Posted by John Smith on May 28, 2004 at 16:43:12:
Thank you so much!
Can you just clarify one fine point? You are saying that whether or not I have an EIN for my SMLLC does not matter as far as IRS in concerned in terms of realestate activies. It is treated the same as if my SMLLC is setup with my personal SSN. Is this correct?
One more question. If I earn interest, points, and fees doing private money lending business (SMLLC), do I report this activity on scheduke B or schedule C? If the answer is schedule C, then would it make any difference if I do this activity in my personal name? Again my CPA was not really sure.
Thanks again,
John