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Old 02-14-2012, 11:38 PM
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LLC and Turbo Tax

I started a LLC last year which has a few taxi cabs for vehicle rental purposes only. All the LLC does is rent the car on a weekly basis and has no employees. My question is where do I enter my income from rent on turbo tax, would it fall under rental property or business income section? Also the deductions for repairson the cars are those just listed under the business expenses. Thanks for any help, this is my first time owning an LLC and using Turbo tax and wanting to do it on my own to learn.



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Old 02-15-2012, 12:27 AM
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“My question is where do I enter my income from rent on turbo tax, would it fall under rental property or business income section?”---->I assume that your LLC is SMLLC;then,you need to report it on SCh C of 1040 line 1b PART 1 as a sole owner of LLC, you are subject to Self-employment taxes..Both Sch C and Sch E are both tax forms used for reporting rental income. They differentiate in the types of rental income included on each form. Sch C is a form used for reporting income subject to self-employment taxes. Any income earned where self-employment taxes must be paid is included on form Sch C. Income not subject to self-employment tax is included on a Sch E form, such as income earned through a business name.Personal property rental income, like machinery , cabs, or equipment, is Sch C. Income on a Sch C is income earned through operating a business where you include income on your personal tax return. You are subject to SEXA taxes as long as the amoun ton SCh SE lin e4 is $400 or exceeds $400.You need to fie Sch C of 1040as long as the amount on SCh C line 29/31 is $400 or exceeds $400.

“ Also the deductions for repairson the cars are those just listed under the business expenses.”---->I guess so;yu need to report reapirs on Sch C line 21.



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Old 02-15-2012, 02:38 PM
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Would I enter the gross income before repairs and expenses or actual profit after all of these are calculated together. I was told by others to do it as rental property and the self employment tax wouldnt apply.



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Old 02-15-2012, 10:07 PM
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“Would I enter the gross income before repairs and expenses or actual profit after all of these are calculated together. “----->Correct; you need to report your tota retal icoem on Sch Cof 1040 line 1b PART 1 and ned to report your repair expenses on line 21.
“I was told by others to do it as rental property and the self employment tax wouldnt apply.”----->In general correct( in your case);real estate rental income is generally classified as passive activity income that is NOT subject to SECA Taxes.However, your commercial cab rental income, as equipment rental, would be included on the schedule C along with all of the other gross income for this purpose, you have to pay self employment taxes, SECA Taxes.So,as you rent property other than real estate, you must report your income and expense from the activity on IRS Schedule C. Examples of "other" rental property include vehicles, office equipment and machinery.



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