Sale of LLC's Rental Airplane

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sabrina.crone3

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Mar 27, 2023, 12:55:04 PM3/27/23
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I have a new client that has an LLC that leases an airplane and flight simulator in various states. Each year there have been losses, which were suspended due to this activity being considered passive.

In 2022, the airplane was sold and thus there is ordinary income to report from depreciation recapture.

Is this income considered self-employed income?

Thank you for your help in determining this.

Lee Reams

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Mar 28, 2023, 11:25:03 AM3/28/23
to 'giraffes5gb' via ClientWhysConnect
The income from the sale of a business asset if not SE income. It is reported on form 4797.  

Lee

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Lee Reams Sr., BSME, EA
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Sabrina Crone

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Mar 28, 2023, 11:25:22 AM3/28/23
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Don't bother answering the question I posed, asking if the LLC plane that was sold was subject to SE Income. I received an answer on this. 

I was told that it is not subject to SE since it is considered a passive activity...just in case anyone else runs into this question in the future.

Sabrina M. Crone, CPA

RSK Accounting Services, Inc.

2240 Buckingham Circle - Loveland, CO 80538





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