LLC Schedule C or E?

[Miguel "Mike" Perez]

Hi folks,

Trying to figure this out and do the right thing while filing my taxes.

I established an LLC to run my real estate business and keep it separate from my personal stuff.

My leases are all under the LLC.

Tenants pay electronically into my LLC bank accounts.

Payments are made through LLC debit and credit cards.

Property is under my name, not the LLC.

:(

Financing was not keen on unestablished LLC at the time. Haven't transferred for fear of due on sale clause.

Schedule C and E seem pretty similar, so which one should I complete?

I have a feeling NOT both.

Thanks.

[Samuel R. Harden]

If you're buying a ready to go turnkey and not putting any work into it, I would assume you're just going to use that as your basis and start depreciating, which is reasonably easy, but you still want to make sure you get it right on your taxes. If you're going to have to put any work into these properties, you'll have to start making choices between what can get expensed and how the rest will get depreciated.

My point being, investing in a good CPA now will not only make sure you get these choices correct, they may also save you money through planning. Even if you decide you don't need their services again, you've started out correctly and hopefully learned what you need to know. The other option is to start out by doing it yourself and, if you do something wrong, end up spending a lot more on a CPA or tax attorney to repair the damage.