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Merlo, Accountant
Category: Tax
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Experience:  25+ years tax consulting. Specializing in returns for US citizens living abroad
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I am thinking about buying a building in IL to rent out for

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I am thinking about buying a building in IL to rent out for meetings and social events. Can I claim this as rental property on my personal income tax without starting a business? If so can I still name the building and have a checking account with that name with out registering with the state?
Submitted: 6 years ago.
Category: Tax
Expert:  Merlo replied 6 years ago.

Hello taffy,


Yes, you may have a rental building without actually starting a company. You would simply report the income and expenses of the rental on Schedule E as part of your personal tax return.


As far as naming the building and having a checking account with that same name -- any bank where you open an account using a name other than your own will require a separate tax ID number for that name. However, you can obtain an EIN (Employer Identification Number) even though you are not formally starting a business. Don't be confused by the fact that this is designated as an "employer" ID number. It is simply a tax ID number issued by the IRS for businesses or any individual who needs a separate ID number even if it is just for banking purposes.


What you should do is file for a d/b/a with the IL Secretary of State. A d/b/a (doing business as" is simply a name that you register with the state that you will be using in your rental business. Even though you have not started a formal business, you would be required to register for a name you used for the building.


The EIN can be applied for right on line. Here is a link to the IRS web page with more information on obtaining an EIN,,id=98350,00.html


For your dba registration, you would need to contact the IL Secretary of State's office to obtain the form you need to file. There is generally a small filing fee of around $10 to register a dba.


If this was helpful please press the Accept button. Positive feedback is also appreciated.


Thank you taffy



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