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a single person put her primary home into a LLC

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Where do I report the home. In a schedule E?

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0 Cheers
6 Replies 6
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Level 15

If it is a rental, then Schedule E. If it is just a primary home, then normal Schedule A entries for taxes and interest. 

I am curious as to the logic of doing this? LLC is for protection of assets. Wouldn't a bigger liability insurance coverage be more cost effective? Does IRC 121 exclusion exist? Is the lender going to get excited because of a change in title? 


ex-AllStar
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For a CA LLC what would the business code be for a primary home in a LLC

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Level 15
I wouldn't. Spend the time canceling this LLC https://www.ftb.ca.gov/about-ftb/newsroom/tax-news/may-2018/how-to-close-a-california-business-entit...
Are you starting by late filing the 568?

ex-AllStar
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Level 15

If you are really gonna do this - 531390 Other Activities Related to Real Estate


ex-AllStar
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Level 13

"531390 Other Activities Related to Real Estate"

Because the assumption is that Business is being done, of course.

Primary residence isn't conducting Business. It seems your client's LLC is renting the property to the client herself, so now you have to deal with this self-rental problem.

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"Level Up" is a gaming function, not a real life function.
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Level 11

I'm not curious at all because there is no logic.  Someone just went to a seminar and took good notes on bad advice.  And now has to pay the annual LLC for California?  Or maybe there's a Stupid Exclusion that applies.  

Still looking for the first case where an LLC was sued for negligence but not the owner.  As you said, if you're worried about liability, there is insurance for that.