personal residence in a single member LLC - Spidell

personal residence in a single member LLC

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Message Board personal residence in a single member LLC

This topic contains 2 replies, has 2 voices, and was last updated by Anonymous 2 weeks, 1 day ago.

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  • #183512
    Anonymous

    I have a new retired client. Her only income is social security, interest and dividend with some stock sales and 1099 R distributions. For some reason she put her personal residence in an LLC. I’m assuming it was a single member LLC, butl I’m still waiting on the documentation. I’m not certain if I can deduct the house expenses (prop taxes, mortgage interest) on her personal return. Do I need to report this on a schedule C? It’s not a rental so I don’t want a schedule E. But she does not have a business. I believe she transferred the residence out in 2019, but I’m still waiting on docs. And that doesn’t really help me for 2018. Any thoughts would be appreciated!

  • #183610
    Lynn Freer
    Participant

    She can deduct interest and taxes. However, I assume the property is in CA, which means she needs to file a Form 568 and pay the $800. Best to get it out of the LLC and get a liability insurance policy

  • #183805
    Anonymous

    Is it correct that she shows the deductions of the interest/taxes on a schedule “A” and not schedule “C” or the 568?