We are a husband/wife LLC (single member LLC, disregarded entity) and report our rentals on our personal taxes.

If so then they are more likely to disregard a seller financing offer.

She said something about a "disregarded entity"Anyway, I decided to just add all my income and subtract my expenses and put that magic (unfortunately very low number) on Worksheet B (this is the non-resident one ---- which is another long story...I don't live in Pennsylvania but my LLC's virtual mailbox is there....so not sure if it's resident or non-resident...but since they are using my personal ss# instead of ein I figure it's non resident....the difference is so minor though, so i'm tempted to file as resident just to avoid any hassle)Do any other cities have this ridiculous additional tax on investment properties? 

-File for an EIN under our LLC name (Must file a partnership tax return as this can not be treated as a disregarded entity like a single member LLC)-Deeds (Quit Claim Deed the properties to the LLC.  

You may be able to deduct it in the year it occurred and disregard the passive loss rules.

Here are some information on LLC taxation: If an LLC has only one owner, the IRS will automatically treat the LLC as a Sole Proprietor(disregarded entity); and if an LLC has multiple owners the IRS will automatically treat it as a Partnership.

If it’s a disregarded entity for tax purposes then you will likely want to set it up in the state of your investment and have the cash pass-through continue to your parent entity.

The operating agreement, if you have one drafted, usually adds a couple hundred dollars to these costs.For tax purposes, the LLC if solely owned by you is a disregard entity and its operations will appear on your personal tax returns.

@Michael Plaks @Darrin Carey I like to use the Series LLC with anonymity trusts for the Asset protection piece and it has the secondary benefit of also being pass through ("disregarded") for the asset holding company.

We own a duplex in a disregarded llc and want to sell the membership interest of the llc to our buyer to avoid transfer taxes.