Your ordinary income in this case is $50,000Example 2 (Separate)You purchase a property for $40,000 and pay your contractor business $20,000 for supplies and labor and sell it for $100,000.

If you are a real estate professional and more specifically, if the income generated from selling this property would be classified as ordinary income you would have a completely different treatment.

All your profit on the sale of the flip is taxable as ordinary business income subject to self-employment income taxes no matter what you do with the proceeds of the sale.   2. 

If you want to charge for out of the ordinary things like a trip charge for unlocking the door for a tenant who accidentally locks themselves out, go ahead.... but then you'll have tenants try to break-in through windows too.

So just report it on you taxes and also report the utilities you paid for as ordinary and necessary expenses.

Partners have unlimited personal liability for the debts of the partnership and the wrongful acts or omissions of any partner acting in the ordinary course of the business on behalf of the partnership.

SE income is subject to SE taxes in addition to ordinary income taxes, because of this most people prefer to make pre-tax contributions to avoid ~12.2% SE tax...When you say SE I assume you are not talking about wages and that you are talking about earnings from self-employment....Most strategies around pretax and post tax contributions are based on expected tax rates. 

@Dylan TranIt appears that the LLC has 3 members and it made a total of $30,000 profit in 2017.It also appears that the activity of the partnership is flipping homes.If this is the case - the partnership will file a partnership return and provide each member with a K-1 listing out $10,000 of ordinary income that is subject to self-employment tax.

And because it's a flip you're prolly looking at ordinary income plus self employment plus ACA surcharge. 

For the most part, if it is reasonable for the rental it is deductible (technically the rule is ordinary and necessary, but for practical purposes it is that the expense is reasonable).