Rental Property Tax Question

[Paul I.]

Got a tax question for your pros out there.

I have a condo in Florida that I rent out through a property management company for short term rentals. The property management company pays the corresponding taxes into the state for me. As part of my compensation package for the company I work for, I have a renal agreement with them on the condo as well. They do not use the condo it's just how my company does additional compensation. The rent is paid from my company to a LLC that I have created. The same LLC receives profits from property management company.

My question - is it ok to file and pay taxes under the LLC that receives the rental payments from my employer ?

I would think that it's ok to have separate entities pay the corresponding taxes for a rental property.

[Basit Siddiqi]

@Paul I.

The post was difficult to read. When you mention "company" you should replace it with "employer" because company can also reference the LLC you have.

With that said - it depends on how your employer is reporting the income to you for tax purposes.
Are they including the payment to the LLC as a W-2?
Are they issuing you a 1099?

If it is for services and you are in fact an employee they should be paying you via W-2 but it seems like they are doing something funky. You may be on the hook for the additional payroll taxes if they pay you as a 1099.