All Forum Posts by: Benjamin DeMuro

@Ashish Acharya In the property management situation, How do PM companies pass along their customer's income without getting taxed?  I'm thinking towards the future if I end up enjoying the PM portion of the business and grow it.  Would it make sense to have 2 LLCs?  One for the rents/property expenses to flow through for both(and hopefully future properties) and a second to hold my investment property?  Or does that just make everything messy?

@Travis Barkel Did you ever get any traction with this?  I'm in Muskegon as well and would be interested in starting a meet up.  I attended a couple of the 616 investor meetups in GR and they were pretty cool.

@Dylan Brown@Jason Malabute Thank you for the feedback. Your responses were on par for how I expected this situation to be processed. I wonder if the confusion came from when I initially approached them with my only the STR that I owned. I believe my LLC was going to be set up as "passive" in the eyes of the CPA. After adding the in laws property, does my LLC need to be considered an "active" investment? I remember them asking me what I thought but I guess they should be telling me.

Hey @JD Martin, Thank you for the reply. That is how I thought it would work too but the CPA I started working wants my in-laws to sign up on the booking sites and have us listed as a Co-Host. I'm working towards treating my LLC as a property management company and my property as well as my in laws would be the clients.

I have my first rental property (STR) going live in the next couple weeks. I understand how the income generated from my property is taxed as I own and manage this property. My in laws are now asking me to manage their lake house property as a STR and plan to pay my wife and I as the property managers. My concern is how the rent received will be reported to me from AirBNB/VBRO on a 1099. Is the rent I disburse to my in laws deductible on a schedule C or E so I'm not taxed on their portion of the rent received? From my own research, I believe I would issue a 1099-misc to my in laws but want to make sure that the rent passed through me (my LLC) would be deductible.