Business Bank account interest and bonuses

1 Reply

Hi BP,

Closed on my first property with a partner this month!   🎆

We're looking into setting up a business bank account for our two member LLC. There are many bonuses available for business checking accounts that get reported as interest income.

Questions:

Where do you report this interest income on taxes?

Is it considered passive income that can be offset with depreciation of the property or business expenses?

Appreciate any advice! 

Wilson

@Wilson Liu

In my layman's opinion, I wouldn't figure it would be passive income. It would be like any other interest. as a multi-member LLC, it would go on the partnership filing forms (sorry, don't know where), and then passed along to your personal returns.

Perhaps one of the accountants will chime in.  Good luck.