George4Tacks
Level 15

A revocable trust is generally just a means of holding something as an individual, but with some thought to what happens when they die. It is then generally ignored for tax purposes and the property or investment is just reported on an individual return.

The client decided to add one more complexity, but setting up an LLC to further protect this property. Was this a SMLLC and hence an ignored entity? Was the rental reported on the 1040, with an additional form possibly filed for state tax purposes. 

OR was the LLC filing as a partnership, since there was a husband and wife?

When the property was sold, what ID number was used? That of the Individual? That of the Trust? That of the LLC?

Oh! So many questions.


Here's wishing you many Happy Returns