All Forum Posts by: Jason Smith

Sorry I probably didn't ask the question correctly. My CPA has already qualified me from a martial participation perspective. Maybe a better way to frame the question was related to if my operating structure with the land trust and property mgmt LLC on if that has any impact on my material participation? I am still doing the same work but set up the LT and LLC to provide improved asset protection but obviously want to structure my business so that I have both asset protection while maximizing tax benefits that i can.

To be fair to my CPA he didn’t say this would be an issue, he is in the process of doing research to verify the impact of the organizational structure changes and I was looking to educate myself in parallel obviously hoping my research and my CPA’s landed in the same place.

Thanks Sean- so as long as I own both the land trust & property mgmt LLC and also meet the material participation requirements then the hours for material participation just retire to the property itself the fact that I am earning the hours while managing the LLC doesn't matter correct?

One follow up question- does it matter if the LLC is single or multi-member? (My wife and I are the members/property is in FL)

Thanks Again

Hello All,

I wanted to get some feedback based on a recent discussion with my CPA. I have a STR property that is in a FL land trust and I set up an LLC to property manage this property (collect rents, etc). I self manage, have material participation status and file on a schedule C. The concern he had and to be fair he said he needed to research it (i am just doing some of my own) was that since most of the work and hours will be conducted in LLC now and the LLC does not own the property would that create any issues with my ability to file a schedule C and claim depreciation and losses, etc? I own both the LLC and beneficiary of the trust. If there are any materials (IRS, expert, etc) that you can direct me to so that i can clarify this situation that would be greatly appreciated.

Thanks