J
John Knight
Guest
I have an LLC that will be an S Corp.. I would like to know how I should treat rents the LLC receives for tools it rents to others. I also use the tools - I'm a building contractor - through the same LLC. Does this pose any problems? Do I treat the rents as section 162 or 212 income? I think 212 applies to real property and not personal property, but a reading of the actual regulation doesn't necessarily indicate this. Any ideas?
Thanks in advance.
Thanks in advance.