NASSAUSUFFOLK

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  • 1.  Section 199A

    Posted 08-16-2019 12:45 PM
    Hi Everyone,

    Here are the facts;

    1. 8 LLCs, each with it's own residential rental property titled to that LLC.
    2. 3 managing members.
    3. Managing members have their own businesses not in any way connected to the rental properties.
    4. I doubt the sum of the time by each member on one LLC would qualify for the safe harbor provision of 250 or more hours.
    5. However, if you add all the time by all three members for all 8 LLCs they would meet the hours requirement.

    Questions;

    1. Do I have to aggregate all 8 LLC on the tax return or is it sufficient to designate each LLC as having met the safe harbor provisions?
    2. Do the aggregation rules even apply in this case?
    3. Is it OK for me to add all the time from each of the members to come up with the hours requirement.  The members are unrelated.
    3. Bottom line is can I apply the safe harbor provisions for real estate so these taxpayer can get the Sec. 199A deduction?

    Thank you all and feel free to call me.

    Paul

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    Paul D. Tusa CPA
    TUSA & ASSOCIATES, CPA, PC
    N Bellmore NY
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The opinions expressed are the views of the author alone and should not be attributed to any other individual or entity and shall not constitute an accounting opinion.