rental property, LLC, Sch C which one?

I believe you have first do a 1120 return for the LLC - Corporate Return- When you do this return you will get a K1 and the information on the K1 will go on Schdule E. In the Corporate Return you will write off all his expenses for the management of the rental properties.

The schedule E is used when you have your own rental property and when you recieve a K1.

I hope this helps.

If I am not mistaken, a single member LLC does not have to file a corporate return. LLC's would file a 1065 if there are two or more partners in the business. If your client had set up a corportation and elected subchapter "S" then they would file an 1120s.

I would have to do more research on whether to report it on schedule E or C or both. If I get time I will look into it.

If it were me I would file a Sch E for the rental property and there is NO NEED to file a corporate return unless you have requested to be taxed as a corporation.

Thought a single owner corp/llc can choose to be looked upon as "dis-regarded entity" and effectively for tax purposes behave as a "sole" partnership and report evrything directly. In such a case he should be able to take advantage of Schedule-E rather than go through the LLC route. I also believe once the election to be treated as a "dis-regarded entity" is made, it continues to be i effect till rescinded/changed.
See this link : http://www.irs.gov/businesses/...

An LLC does not have enough corporate charateristics to be a corporation for tax purposes. Instead, it files a tax return as a
partnership/sole proprietorship, which is of course included on the personal return....Sch C

-KTS-

Sorry, but you answer is not accurate. My own company is an LLC, but when I set it up I completed IRS form 2553 Election by a Small Business Corporation that allow me to be treated as an S-Corp (and file form 1120S).

There are certain election test requirements so not all businesses/entities qualify.

There is no way to tell how an entity is being treated for tax purposes simply by the LLC status. I wish the IRS would make this much clearer in certain areas, such as on the form W-9.

Diane

An LLC can elect to file tax returns as a sole proprietorship (Sch C), an S-corp (1120S once approved by IRS and the state) or a C-corp (1120). If there are two or more shareholders involved they can also elect to file as a partnership (1065) I believe the first time the LLC return is filed in NY is when you designate how you want to file. It also affects howe much is paid for the annual LLC franchise fee.