All Forum Posts by: Gary Li

My Living Trust does not have EIN number, do I have to apply the EIN number? The Living Trust attorney told me there was no impact to file my Tax return, is it not true?

I just Transferred AAA LLC (me and wife owned 50%-50%) and BBB LLC (me 100% owned) to our revocable Living Trust, before AAA LLC file Tax Return with form 1065 and BBB LLC file Tax Return with Schedule C, What form should I use after I transferred both LLCs to the revocable Living Trust (me and wife are beneficiary and Trustee )? is there any impact for filing the Tax Return? we live in California.

Thanks

I just Transferred AAA LLC (me and wife owned 50%-50%) and BBB LLC (me 100% owned) to our revocable Living Trust, before AAA LLC file Tax Return with form 1065 and BBB LLC file Tax Return with Schedule C, What form should I use after I transferred both LLCs to the revocable Living Trust (me and wife are beneficiary and Trustee )? is there any impact for filing the Tax Return? we live in California.

Thanks

Thank You, Michael!

Thank you so much, John and Kevin!

I Just bought a Rental Property under my personal name, and I also bought the Rental Property Insurance, and found the policy shows the insured name is the Property Management Company name. I checked the Insurance agent, who told me, because the Landlord name on my Lease Agreement was the Property Management Company, so the Insured name have to be matched with it.

My questions are:

1. I believe so many Property Management Company sign the Lease agreement represent the Real Property owner with the tenant, is the way Insurance Company insured the name of Property Management Company correct?

2. If the Tenant sued me for anything wrong, would that cover my liability?

3. If the property caught fire, does the insurance Company pay me for the lost?

4. What is the right insured name for the Rental Property Insurance Policy if the Lease Agreement was signed between the Property Management Company and the Tenant? not the Real Property Owner with the Tenant?

Thanks

I have a question, I am planning the living trust now, and I plan to transfer the Rental properties from my name to the living trust, my question is: for the tax point of view, the rental properties under my name vs under the Trust name, is there any difference? I mean do I still can deduct all expenses, repairs, mortgage Interests. property tax, and the freebie 20% of the net income?

Thanks

This is really depending on how much active income you can earn. my experience is if you manage a few properties, you only have few thousands dollars as your active income, after deducting your LLC Office expenses, you do not have enough active income to contribute to the solo 401K. Also IRS will question you if you improperly convert the passive income to the active income, like manage your own properties, transfer your Expenses in Schedule E as your income on Schedule C.

Harry just said "The LLC does not need to be profitable at the time it joins the plan", I don't understand what that means, if your net active income is $1000 at the year end, could you contribute $2000 to the solo 401K?

Hi Brandon,

How about if I form a LLC (Husband and Wife) to manage all our properties, can I put the Properties Management Fees on Schedule E as expense, and Income on Form 1065 for the LLC, does IRS allow using this way to shift the Passive Income to the Active Income?

I appreciate everyone's help, thank you for all the suggestions!