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Tax, SDIRAs & Cost Segregation

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Todd Michael
  • Real Estate Investor
  • Olathe, KS
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Reporting 1090-INT income on 1040 for single member LLC

Todd Michael
  • Real Estate Investor
  • Olathe, KS
Posted Feb 1 2015, 07:35

In 2014 I created a single member LLC for the sole purpose of using to invest in crowdfunding opportunities. Since its a single member LLC and for tax purposes is classified as a sole proprietorship LLC, all revenue just passes through to my individual tax form. But, I've received a couple of 1090-INT's with my LLC's EIN (not my SSN) and am not sure where to report. Is it on my Schedule B with interest income earned by my SSN? Is it on the Schedule C, and if so, where? Other income? Seems like there I can't itemize the 1090-INT's.

I will say that I set this LLC as a way to just isolate this activity, but was a bad idea. It just overly complicates things for no benefit. But, what's done is done.

TIA for any help.

Todd M.

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Craig Rismiller
  • Real Estate Investor
  • Chicago, IL
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Craig Rismiller
  • Real Estate Investor
  • Chicago, IL
Replied Feb 1 2015, 08:46

Todd Michael Even though you are a single member LLC, I believe your LLC needs to file tax returns. The LLC will then issue you a K-1 for your personal return as all profits / losses are passed to you.

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Steven Hamilton II
Pro Member
  • Accountant, Enrolled Agent
  • Grayslake, IL
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Steven Hamilton II
Pro Member
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied Feb 1 2015, 14:54
Originally posted by @Todd Michael:

In 2014 I created a single member LLC for the sole purpose of using to invest in crowdfunding opportunities. Since its a single member LLC and for tax purposes is classified as a sole proprietorship LLC, all revenue just passes through to my individual tax form. But, I've received a couple of 1090-INT's with my LLC's EIN (not my SSN) and am not sure where to report. Is it on my Schedule B with interest income earned by my SSN? Is it on the Schedule C, and if so, where? Other income? Seems like there I can't itemize the 1090-INT's.

I will say that I set this LLC as a way to just isolate this activity, but was a bad idea. It just overly complicates things for no benefit. But, what's done is done.

TIA for any help.

Todd M.

 You would purely report that on Form 1040 as you would any other interest on Schedule B.

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Linda L.
  • Monterey Park, CA
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Linda L.
  • Monterey Park, CA
Replied Oct 3 2015, 11:00

What if you receive K1 with your EIN#, do you report it in Schedule E with your SS# there?

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Cameron Skinner
  • Investor
  • Panama City, FL
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Cameron Skinner
  • Investor
  • Panama City, FL
Replied Oct 3 2015, 13:51

if the LLC is treated as a "disregarded entity" for tax purposes you need to provide your ssn not ein to crowd funding platforms in the future. Just report on you schedule b, you will probably get a computer generated letter from irs asking why you did not report 1099 int with associated ein just write them back provide a copy of the schedule b, and explain it is a "disregarded entity " and the 1099 improperly used the ein instead of your ssn. This is a common error, not a big deal, and irs is use to fixing it after the fact. Hope this helps, good luck!