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LLC and 1040C
I recently moved one of my rental properties into an LLC to protect my personal assets. When I filed my taxes, my tax agent said that I must file a 1040C for the LLC and that the 1040C does not protect my personal assets. They told me that I must move the property into an S-Corp in order to shield personal assets. Any guidance or tax laws for this? Any questions I Can ask the agent for further explanation or rebuttal? Thanks for any input
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- Tax Strategist| National Tax Educator| Accepting New Clients
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Just to confirm- are you based in the US?
If so- An LLC being created would not generate a schedule C for a rental, it would still report on Schedule E (the same way it would without an LLC)
How much protection an LLC offers is open to interpretation- but your tax professional isn't an attorney and shoudln't advise on this.
You absolutely should not move a rental into an S corp- it creates a whole slew of issues related to creating MORE tax on your rental property.
I'd recommend potentially looking elsewhere for your tax sevices.
