Real Estate Tax Questions for Investments

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real-estate-tax-advisorIf you have real estate investments or plan to soon, then today’s blog is for you. It’s comprised on the questions that we couldn’t get to on June 30th webinar. Please go to to hear the whole webinar.

Q: Is rental RE investment property or business property?

If the property has been put in service, then it creates passive income. If you sell, it reports on Form 4797. If the property has not been put in service, there is no income or expense. If you sell, it reports on Schedule D as a capital gain or loss.

Q: Can you be the property manager for your properties (no other clients) and get income from your LLC partnership (as one of its manager?

Can you? Yes. Should you? That depends on what your desired outcome is. You can’t change the character of the income. But, it can be an efficient way to keep track of your expenses.

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