Updated almost 4 years ago on . Most recent reply
LLC Formation for Rental Properties
This may apply to both short and long-term rentals...but you tell me because I am unclear.
My husband and I are going to buy our first single-family home or townhome and turn it into a short-term Airbnb rental.
We plan to form an LLC as the holding company for all rental properties we will own.
Question 1: Is it necessary to file the LLC separately for tax purposes or can we still include it on the Schedule E form in our joint tax return?
Question 2: My husband will be the investor/owner and I will be the active property manager for the short-term rental (and any long-term rentals in our future). Is it necessary to show that he, as the owner, is paying me, as the property manager, a management fee/salary expense on the Schedule E form? And if so, do I need to fill out a 1099 contractor form or can he simply send it to me and I show that as my income on the joint tax return?
Appreciate any and all answers! :)
Rose