Question on using 1 LLC for 2 businesses

[Ayesha Hansen]

Question on using 1 LLC for 2 businesses

Can I use 1 LLC to conduct 2 very different businesses ?
I am wondering if the IRS will object to it.

I have used the LLC for another business in the past.
However, because of the economy that business has almost no revenue.

I have 2 rental properties.

Since I already have an LLC, I am wondering if I could run the
rental income thru this LLC.

In the past I have used Schedule E for the rental properties.

I think by using the LLC I will get the LLC liability shield.

Any thoughts on this ?

Will the IRS wonder what is going on when they see a tax return of
rental properties instead of what they saw in the past in the return?
ie a totally different business.

Will this raise a red flag with the IRS?

Your take on the above subject would be great.

Ayesha Hansen

[paulthomascpa]

"Ayesha Hansen" <ayesha...@gmail.com> wrote

If you're looking to off-set rental activity losses against self-employment
income, give it up now. There's plenty of case law to deny the rental
activity losses and assess additional taxes, interest and penalties.

Besides, rental properties can, and often times are, operated under an LLC
entity. Single member LLC's with rental real estate get reported on
Schedule E, as appropriate.

--
Paul Thomas, CPA
www.paulthomascpa.com