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Updated almost 7 years ago,

User Stats

908
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623
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Don Spafford
  • Investor
  • Idaho Falls, ID
623
Votes |
908
Posts

tax filing under LLC or personal rental income?

Don Spafford
  • Investor
  • Idaho Falls, ID
Posted

This is my first year holding rental property. I hold title to it in an LLC but the mortgage is in my name. While filling out my taxes I placed the rental income as the LLC income, thereby creating it as business income subject to self employment tax. With depreciation it is a loss and therefore self employment tax is 0. My question though is, would it be better to file it under Personal Rental income rather than income through an LLC? Since it is a sole LLC, it is a pass through entity anyway. I do have a tax id number for it but I don't know if that means I have to file with it or not. Just trying to verify the best tax strategy. Thanks for the continued BP community support.

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