BEST TAX STRATEGY with W2, LLC and Partnerships!!!

[Trist Baylon]

Hi guys, need help with our tax returns. We've been going back and forth with the lender and our accountant. We do have LLC; two houses in Huntington Beach with ADUs, STR in Big Bear under our name and our LLC and two STRs in Smokies with partners under two different partnerships per property. Goal is to purchase our primary residence in the future and both my husband and I have W2s. My question is, underwriter of our lender is saying to reflect all properties in our personal tax return schedule E page 1 and not in 8825 in the business returns. On the other hand, my accountant is saying once we do that since we've been filing everything through our LLC return in the past we don't have means to go back and we're putting ourselves at risk of being audited. He wanted to separate business returns from personal. Just wanted to see what everyone's doing when you have W2,LLC and partnerships. Do you put all your properties in schedule E page 1 or personal tax return or file separate through LLC and partnerships? What's the best way to maximize tax write off at the same time still get approved with future loans to upgrade our primary residence(looking to buy minimum of $1.5M worth of property)? Thoughts? Ideas? Experience? Any help or advice regarding this would be greatly appreciated. Thanks in advance guys!

[Basit Siddiqi]

File the returns correctly

If you have a multi-member LLC, they require a partnership return to be filed where the rental activity would be filed under form 8825.
The only exception is an LLC where the members are spouses and the LLC activity/business in a community property state.

You would also report the activity on your individual return if the property is owned as tenants in common instead of through an LLC. However, it appears that it is owned through an LLC.

Don't listen to your lender if he is telling you to do things incorrectly.