Where does this income go to on the federal tax return?
1. My husband and I invest small amounts of money in many Trust Deeds. (These are loans to buyers to acquire Real Estate).
We are thinking of creating an LLC for this income to protect us from any crazy litigation or anything else.
2. We have a revocable family trust and this family trust will be the sole member of the LLC
3. To open a bank account we will need to get a EIN from the IRS etc.
4. All income will go the LLC bank account.
5. My question is where does the income from the LLC get recorded in the federal tax returns?
In Sch E as rental income or as business income or ???.?
- posted 7 months ago