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When you file your 1065 forms for each of the LLCs, the income will be designated as rent. When you get your K-1 form, the income will retain the same attributes as if you held the real estate personally. There is no social security or medicare taxes on rental income
Is this on a consolidated return or are these returns separate?
Are both of these single member LLCs?
or do you have partners
Single member LLC's
I am the member of the LLC 1 and LLC1 is the member of LLC2
Then the income goes straight to schedule E on your tax return
LLC2 is disregarded and goes to the return of LLC1, and LLC1 is disregarded and goes to your return
The only way they would have separate tax returns would be if you elected to be taxed as a corporation or S corp, which is not advisable for real estate
Is there a field to put both LLC's on there with both tax id's?
The tax IDs are for banking purposes only
single member LLCs do not report income to the IRS using the tax ID
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