All Forum Posts by: Gail W.

See my blurb, above. We (The Mr and I) are there almost twice a week; visiting our friend, cleaning the pool, working on upgrades...  Believe me, there are no worries about the clientele or the people running it. ;) 

All officers of said LLC have indeed signed personally and supplied their SS#s; and have paid full rent when the home was empty at times. They run it thru a Christian church and are very selective on who they allow in. It caters to the higher end of clients in South OC. Coming up on a year now and the neighbors actually love them! They do a lot of volunteer hours in the neighborhood; lawn work, paint, keep the common areas clean and chase off the riff raff (this is one those older, upscale neighborhoods w/o an HOA, big homes on nice sized lots; the kind they don't do anymore around here. Where the families are either newly retired or with older teens, which cause older teen types of issues if you know what I mean)

THAT isn't my issue. I was just trying to get some fast answers on a weekend (CPA is out) regarding how it may/may not be taxed differently as an LLC. And yes, Yahoo too only wanted to tell me how I could form an LLC if I collected rents... not if I rented TO an LLC. But thanks all! Got the answer!

THANK you. Such an easy answer...so hard to find on the innerwebz. :) 

I am getting nowhere when I Google or search on BP: "Renting to an LLC" or similar wording because all I get back is info on becoming an LLC if you own rental property.

What I'd like to know is, if I rent my house out to a company that is an LLC, does that make any difference? They will 1099 me. Specifically, will there be any tax ramifications? Do you get taxed more or less? Or does it have no bearing?

(Quick background info: this was our home of 15 years, we moved out to a rental and attempted to find a tenant, no one wanted it because it was a dump, we spent 7 months fixing it up (and lots of $$), we rented to a friend who has an LLC as a sober living biz, we are now for the 1st time having to do taxes in a new way)

Thanks all!

Not to change the subject, but do any of you pay quarterlies? I mean, are any of you making so much that your taxes are pretty hefty??

But what if we have owned the home since 2002 and lived in it til mid 2015? We moved out when we thought we had a renter, then it fell thru, then slab leaked, etc... Rented it May 2016. Does it matter that we didn't just buy it??

Oh I am, definitely! I'd just like to kinda have SOME idea of what's what since so many so-called experts have already given me conflicting information. I just called about 4 CPAs. So far, haven't received a ton of info. I'll have to go in with my stuff (half of which is gone). It's so hard to know which one's legit!

REALLY??  Ooooo!  I had some one else (a neighbor who's a CPA) tell me it was too late!

So if I add them to the Schedule E, with the date of work done (2015), I won't get flagged? 

OK. So we just could not afford our Laguna Hills, CA house anymore. The kids were gone, the electric bill was massive, the neighbors were awful...so we figured we'd rent it out and find something smaller/cheaper to rent. 

So mid 2015, we moved out and started to get it ready for renters. Then we had a flood from a slab leak, so we had to rehab the whole downstairs. Insurance paid about $22k and we pulled a HELOC for $70k to get everything repaired correctly. Insurance funds went toward floor, cabinets, counter tops (because the cabs were messed up and had to be ripped out, the counters cracked), some baseboard, some painting.

So we put it up for rent, but people would walk thru and never call or offer way less than going rate. So we started asking WHY? Cuz the rest of the place was a dump! NOTHING worked any more! So we then  painted the whole joint, repaired the rotted fascias, replaced the ancient AC/heater, new pool pump equipment, new concrete driveway to replace the crumbling asphalt, new landscape, updated bathrooms (resurfaced shower, nice, new cabinets/sinks, but off Craigslist), more new flooring extended throughout the entire house... even some upgraded pool furniture and a nice BBQ outdoor kitchen as we were told we are in a high end area that requires these types of amenities.  Took FOREVER! So now it's 2016...!  So I'm doing my own taxes Feb 2016 and asked a few CPAs if I can deduct any of this. No, as I didn't recv rent. So I just do my regular old taxes with hubby's income (I don't work).

Fast forward to mid 2016, we FINALLY rent the house out to a friend who is running a Christian Sober Living home and we're making some great money. Now, I'm sitting down to do my own taxes again (I've always used Turbo Tax) and start researching all of this. And, as most of you prolly already know, I find that I may have been able to do SOMETHING about all that dough we spent in 2015, even tho we didn't have a renter yet! SO... my question is, is there anything I can do about that NOW? Otherwise, we are getting a HUGE tax bill this year due to all that added income (I ran it as a regular rental w/ regular deductions so far).  I'm thinking I need a pro but I can't find all the receipts/paperwork due to half were lost in a car issue.

We are JUST starting to do OK (after having to pay off a TON of debt and still paying off previous federal and prop taxes-kids in So Cal are EXPENSIVE!). If we have to pay THIS huge tax bill, we may just sell and get out of Cali. I feel so lost and DONE.  A lesson to all you researching if you should rent that house out... learn as much as you can BEFORE you start spending any time or money!!

My adult daughters rent our home...the one they grew up in. We moved to a tiny house on a farm, but they wanted to stay, so we've allowed them and their college pals to rent it for years. They are now all successful adults and 1 is married. They both state they want to stay in the house forever...(BOTH want to own it one day-we'll let them fight that one out!)

The master bath is in the master bedroom that the eldest daughter rents (she pays double what the married daughter upstairs pays w/ a shared bath).  There was water damage from the bathroom up above and now there is a big hole in the ceiling above the shower, the pan is disgusting, the tiles are broken, the flooring is warped... it aint pretty! The shower will be converted to a bathtub as all of us girls LOVE baths. (As I MAY have to live in the house someday and that would be MY room again, I too desire a tub...but I do NOT want to live there any time soon...it would be an option only if a life altering event took place...my fall back). 

Right now, it is 60's white subway til in a size no longer made. The shower pan is an old worn out fiberglass job.  After ripping all of that out, we will need to decide if we go easy with an acrylic/fiberglass 3 pc tub surround OR the more difficult job of tiling the whole thing above the tub.

FACTS:  We have never tiled before. We can not afford a pro. We do have family that can give pointers, however, they are not pros, just DIY'ers.  We have no plans on SELLING this home any time soon. We have no plans of renting it out to "strangers".  We just remolded the kitchen (via an insurance covered slab leak incident) and I'm not thrilled with the way the kids are keeping it up...it's very high end; like a fool, I asked for the best of everything. My girls don't seem to be the best at housekeeping chores. It's all concrete slab. We will have to bust up the slab to install the new tub drain and fixtures. WE have a life; we run a small farm and travel.

I'm torn; do we just do a quick/easy surround that the eldest will be happy with and be able to maintain? And if we ever move in, redo it?  Or do we take the time and effort to do tile and hope she keeps it nice?