Rental LLC

[Greta]

Client has two rental properties, and plans to put both in an LLC, sole member. Normally this is a disregarded entity. I want to urge her to put each property into a separate LLC. But if she puts them both into the same LLC, how do I keep the rental information separate on Sch E? Put cumulative amounts into one column? Delete the old rental depreciation I had in prior years? Or have her husband as co-owner, so I could file the rentals separately on Form 8825. So far in 2021 (she filed an extension) she put just one into the LLC, so I can probably handle it in 2021.

[TaxGuyBill · Accepted solution]

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@Greta wrote:

 this is a disregarded entity.

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Do just that.  Disregard it.  Enter it as two properties owned by one person.

[Greta]

In two separate columns on Sch E, use actual street address, no EIN or LLC indicated?

[IRonMaN]

Correct 

[BobKamman]

What law school taught you to choose two LLC's?  

(Obviously, not one in California.)

[tkellyesq]

It seems to me recommending a Single Member LLC as an entity is a legal question due to the difference in possible available creditor remedies between a Single and Multi-member LLC. Be careful.