Real Estate Taxes when holding rentals in disregarded entities

[Josh Corby]

Hey Guys, I have a couple of questions regarding taxes on the rental income I receive. First off, I'm investing in Florida, so there is no state income tax. I list all the questions I have below and would really appreciate it if anyone, preferably a tax professional, can give me a better understanding on these topics. 

1) Does rental income get hit with self-employment tax if I hold them in a pass through entity? 

2) What are all the taxes (with rates) I would have to pay in regards to holding all my properties in a single-member llc (disregarded entity)? Could you please provide an example?

Thank you guys so much for the help!

[Ashish Acharya]

Originally posted by @Josh Corby:

Originally posted by @Ashish Acharya:

Originally posted by @Josh Corby:

Hey Guys, I have a couple of questions regarding taxes on the rental income I receive. First off, I'm investing in Florida, so there is no state income tax. I list all the questions I have below and would really appreciate it if anyone, preferably a tax professional, can give me a better understanding on these topics. 

1) Does rental income get hit with self-employment tax if I hold them in a pass through entity? 

2) What are all the taxes (with rates) I would have to pay in regards to holding all my properties in a single-member llc (disregarded entity)? Could you please provide an example?

Thank you guys so much for the help!

1) No

2) SMLLC doesn't change your tax position. You are not paying extra taxes or saving taxes with the SMLLC for your rentals. 

Gotcha. So I would only be liable for the regular income tax? Also, would I qualify for the 20% QBI deduction?

Yes, normal tax, if that is a word. 

Maybe, but might not be impactful or even hurtful. You need to discuss this with your CPA.