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Updated about 6 years ago on . Most recent reply presented by

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20
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Jennifer Bott
  • Investor
  • North Grafton, MA
0
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20
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Consulting Income in Rental Real Estate

Jennifer Bott
  • Investor
  • North Grafton, MA
Posted

We have an LLC holding our 10 rental properties. My husband, single member, gave consulting advice to a friend with respect to the rental real estate business and helped him acquire properties, set up an LLC etc. and was paid to do so.

Would this income he received be considered passive, and reported on Sch E within our LLC? If so, would it be spread out as 'other income' across the properties? Should this friend send us a 1099-Misc? Want to confirm that it would not be subject to SE taxes....

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