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Updated about 12 years ago on . Most recent reply

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Will S.
  • Residential Real Estate Broker
0
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Pass through income to LLC to secure Commercial Lending?

Will S.
  • Residential Real Estate Broker
Posted

Tax season is approaching!
I am a buy and hold investor in the DC area. Currently my properties each have their own LLC, and the taxes reflect the same. However, I know that down the road I would like to break into commercial lending, borrowing against an LLC. For that reason, does it make sense for all profits from the various LLC's to "pass through" to a central LLC? Perhaps two years from now it might be able to qualify for a loan? Any thoughts?

Most Popular Reply

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5,271
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
2,325
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5,271
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied

Will Stein,

Ultimately, the lender will want to know how the LLC is making money which will come down to seeing that it is rental income. They will then want to see the tax returns showing where the income came from. You are probably looking at it being just extra paperwork but maybe Bill G. will hop in here and have some input.

-Steven

  • Steven Hamilton II
  • [email protected]
  • (224) 381-2660
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