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Updated almost 9 years ago on . Most recent reply

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Bryan Wilhelm
  • Harrison Township, MI
6
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39
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No income for our LLC, taxes?

Bryan Wilhelm
  • Harrison Township, MI
Posted

I have a newbie question regarding income for an LLC. If a property grosses a 100k, nets 50k after expenses, and then capitalizes the other 50k in improvements to the property, what is the income that is taxed? 100k? 50k? 0?

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Chris Soignier#5 Coronavirus Conversation Contributor
  • Real Estate Broker
  • North Richland Hills, TX
607
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Chris Soignier#5 Coronavirus Conversation Contributor
  • Real Estate Broker
  • North Richland Hills, TX
Replied

$50K in that period.    The $50K of improvements would be depreciated over a number of years.

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