Hey folks,
Just got draft back from my CPA for first year of park ownership (2014). Delighted at how depreciation helps cash flow in these early years.
One surprise, some self-employment tax appears to have generated. My SFR rental properties simply appear on schedule E and are subject to state and federal income taxes, but no SE tax.
My accountant put the park on Schedule C, which I believe is correct since it’s in an LLC, and SE tax was generated on the after expense income. Wasn’t expecting that…
Is this is line with what others have found? Is this just the (relatively small) price one pays for the protection of having the park in an LLC and not just as another rental property on Schedule E?
Thanks as always,
HPD