Investor · Box Elder, SD · Member since 2014 · 228 posts · 43 votes
Hey everyone one. I just formed a LLC for my Buy and Hold properties for myself and my wife. Since it is both of us on the LLC , I assume the IRS will consider us as a partnership since LLC's are disregarded entities. Since it is a pass through entity does the rental income pass through to us on the K-1's. And is it still considered rental income. I know one a single owner LLC it does but is it the same for multi owner LLC?
@Steven Hamilton II I was thinking that from what I read last night. But talking to the CPA yesterday afternoon I was sure she told me that since it was a partnership then the income would be taxed as self employment income along with the normal tax rate. Maybe I misunderstood her. She was talking about taking distributions also and some other stuff with S corp election if I wanted that. Pretty much it was too much info and I was trying to wrap my head around it all.
On the rental income, can you take that out, or how does that work since it is all pass through?