All Forum Posts by: Gary Li

Thank you for the valuable information, I wonder how to structure the business entity to prevent paying the self-employment tax?

I will try to involve the Property Management for my friends, and want to know:
1. the Property management income belong to passive income or active income?
2. if the property management income belong to active income, do I have to pay self-imployment tax?

Thanks

I hired several persons/contractors to do the painting, landscaping, cleaning and maintainance, but I don't have their SSN or TIN, so I did not send them form 1099MISC, do I still can deduct all those costs from the rental incomes on my tax return this year?

I have a LLC and tried to transfer the Tile of my rental properties from my name to the LLC, but I heard the Lender would not allow to do it. so I use my LLC to sign the rental agreements and collect rental incomes and maintain the properties in the past year, but rental properties are still under my name, my questions are:
1. for my personal tax return, should I use schedule E or form 1065 with form 8825 to report my rental income?
2. how to file form 1065 for the LLC on my case (only have rental income)?

I know if the rental propeties are under LLC, then I will use Form 1065 with form 8825 to report Rental income, but on my case, all properties are still under my name, if I use schedule E for my personal Tax Return, then how to file the report for the LLC?

By the way, in order to transfer the Tile to LLC, the Lender asked me to pay off the current loan and refinance using LLC, which I just opened less a year, there is no credit under LLC, anybody has any experience on that?

Thanks

Thank You Mitch and Bill for sharing your knowledges. I notice many accountants and attorneys tell you different, but here I believe tons of people have real lessons and experiences to share with.

Another question: some accountants say I need to pay self-employment TAX, some say no, which is right?

Thanks

I am new here, and just start Housband and Wife two members LLC in CA to manage my own rental properties, I have 4 single family rental properties in CA, I want to long-term hold them, rental net income will not exceed $20K yearly, we will not take salaries from the LLC, from the TAX saving and personal asset protection points of view,
Is LLC the best Entity for us? any suggestions?

Other questions:
What kind of Taxes should I pay? (all types of Taxes)
What kind of business licnese should I have?
Do I need FEIN?
What else Do I need normally?

Thanks