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Updated almost 6 years ago on . Most recent reply

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6
Posts
1
Votes

Taxes from personal to LLC

Jacob Coniglione
Posted

Hey guys and girls, My grandpa and I recently bought our first rental with Basically with cash ( he carried a small note something like 20k). We create an LLC to run the rental and control the finances and such, the LLC collects 1300/ month in rent and then pays my grandpa 1100 back to pay him back for the investment. (This also covers taxes and insurance on the property). I over arcing question is is the 1100/month payment to my grandpa taxable income to him?

Thank you very much!

Most Popular Reply

User Stats

84
Posts
149
Votes
Jason Hendrickson
  • Rental Property Investor
  • Park City, UT
149
Votes |
84
Posts
Jason Hendrickson
  • Rental Property Investor
  • Park City, UT
Replied

If the $1,100 is going only toward principal then there won't be any taxable income. If some portion of that $1,100 is interest then the interest will count as income.

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