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!
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