Real Estate Investor · Baltimore, MD · Member since 2008 · 1k+ posts · 268 votes
When buying tax liens in the name of an LLC, do I have to fill Schedule C (profit and loss) for tax lien interest (1099INT) or can I show it on my personal return? I don't have any income in the LLC name otherwise.
Real Estate Investor · Northeast TN, TN · Member since 2008 · 516 posts · 361 votes
14y
George, I take it that your LLC is single-member and has NOT made a corporate election, right? If so, then you have a disregarded entity and the income will be reported on your personal return. Interest would be reported on line 8a of your Federal 1040.
Real Estate Investor · Northeast TN, TN · Member since 2008 · 516 posts · 361 votes
14y
George, I take it that your LLC is single-member and has NOT made a corporate election, right? If so, then you have a disregarded entity and the income will be reported on your personal return. Interest would be reported on line 8a of your Federal 1040.
Accountant · Hyattsville, MD · Member since 2011 · 120 posts · 44 votes
14y
It depends on the type of LLC, Single Member LLC are disregarded for tax purposes meaning that the income or expenses you receive from the LLC are picked up directly on your tax return. If it is a multi-member LLC, then you would need to file a form 1065. In this case, sounds like a SMLLC therefore that income retains the original character of being passive income and therefore belongs as interest not Schedule C income