Michigan. 24 no. Business. I have a rental property which…

Question

Michigan

Accountant's Assistant: How old are you? Do you have any dependents
[/topics-dependent/]?

24 no

Accountant's Assistant: What is your typical filing [/topics-filing/] status? Do
you know roughly what you made this year?

This is for a business

Accountant's Assistant: Is there anything else the Accountant should know before
I connect you? Rest assured that they'll be able to help you.

I have a rental property [/topics-rental-property-tax/] which the title is held
under a personal [/topics-personal/] name. I created an LLC [/topics-llc-tax/]
and set up a bank acc with an EIN for that LLC. All operating income
[/topics-income/] & expenses have gone thru the LLC bank account. Again the
property [/topics-property/] is not held under the LLC. Just the financing for
the said property. How do I go about this>

Lev · Accepted Answer

Hello, I am LEV, and I will help you with your question today. You have reached
JustAnswer, an independent paid question-and-answer platform.
Please note that this service is for educational purposes, and not intended to
substitute for obtaining advice from a professional licensed in your state
[/topics-state/]
Give me some time to review your question and I will reply with the best
possible answer for you.
Be sure to ask to follow up on your question as needed. I'm here to help.
Thank you for being so patient!

Dear Customer,
A Limited Liability [/topics-liability/]Company (LLC) is a business structure
allowed by state statute. Depending on elections made by the LLC and the number
of members, the IRS will treat an LLC as either a corporation, partnership
[/topics-partnership-tax/] or as part of the LLC’s owner’s tax [/topics-tax/]
return [/topics-return/] (a “disregarded entity”).
For income tax purposes, an LLC with only one member is treated as an entity
disregarded as separate from its owner unless it files Form [/topics-form/] 8832
and elects to be treated as a corporation. "Disregarded" means ignored for
income tax purposes (while the LLC is still a separate entity for other
purposes). That also means all income realized by the LLC is reported on the
owner's tax returns [/topics-tax-returns/] as if there were no LLC.
My goal is to provide you with excellent service. If you have any further
questions, please don't hesitate to ask - I am happy to help further!

Dear Customer,
If you own rental real estate, you should be aware of your federal tax
[/topics-federal-tax/] responsibilities. All rental income must be reported on
your tax return, and in general, the associated expenses can be deducted from
your rental income.
You generally must include in your gross income [/topics-gross-income/] all
amounts you receive as rent. Rental income is any payment you receive for the
use or occupation of a property. You must report rental income for all your
properties.
If you receive rental income from the rental of a dwelling unit, there are
certain rental expenses you may deduct on your tax return. These expenses may
include mortgage interest [/topics-mortgage-interest/], property tax, operating
expenses, depreciation [/topics-depreciation-tax/], and repairs.
You can deduct the ordinary and necessary expenses for managing, conserving, and
maintaining your rental property. Ordinary expenses [/topics-ordinary-expense/]
are those that are common and generally accepted in the business. Necessary
expenses are those that are deemed appropriate, such as interest
[/topics-interest/], taxes, advertising, maintenance, utilities, and insurance.
You can deduct the costs of certain materials, supplies, repairs, and
maintenance that you make to your rental property to keep your property in good
operating condition.
You can generally use Schedule E [/topics-schedule-e-tax/] (Form 1040
[/topics-form-1040-tax/]), Supplemental Income, and Loss to report income and
expenses related to real estate rentals. Net rental income ( as calculated on
Schedule E) will be transferred to the tax return and included in your gross
income.
My goal is to provide you with excellent service. If you have any further
questions, please don't hesitate to ask - I am happy to help further!

Lev · Answer

I hope I’ve provided the information you were seeking. If you need more help,
please let me know so l can continue to assist you.

Michigan. 24 no. Business. I have a rental property which…

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