Taxation on a manager-managed LLC
A friend and I are planning on opening a manager-managed LLC to buy properties and rent them out. We are have to use a manager-managed LLC where my partner is the manager and I am a evasive investor. I have two questions:
-Does my partner have to pay a self-employment taxes for managing the LLC?
-Can I, as a passive investor, take advantage of the tax benefits of owning real estate? In other words, Can I deduct from my personal taxes the the money that the LLC spend on repairs, insurance, the property management, accounting, legal advice,etc?
Thank you very much, I really appreciate your help!