LLCs seem to be a pain

[Pacun]

Client "owns" two houses. One house is where she lives and rents 2 rooms and the other one she has a daycare where she works.

She openen an LLC and it is a disregarded entity for the daycare.

Prior preparer had a 25K loss in the rental and on the day care he didn't depreciate the second house, (I believe) because it doesn't belong to the LLC.

So, can the LLC (since it is a disregarded entity) depreciate the house where it operates? If not, can the LLC rent that house from the owner so that the owner can depraciate the house?

If LLC cannot depreciate the house, it should be able to rent it, correct?

[OldJack]

What is there you don't understand about "disregarded" for tax purposes. Disregard the LLC except for legal purposes.

[Abby Normal]

Prior preparer was wrong. Amend those returns and depreciate the house (and take all the expenses) on the day care Sch C directly.

[Pacun]

Prior preparer was wrong. Amend those returns and depreciate the house (and take all the expenses) on the day care Sch C directly.

That's what I was planning to do. Thank you for your reponses.

I was doing her return but she was always late and she talks too much. So last year, I told her I was not going to have time and i don't do extensions. So my assistant told her to go somewhere else and she did. This year I had a chance to raise my price by 50% and she wants to come back. At least she brought her papers in March. She always came in after April 5th.

[kcjenkins]

What is there you don't understand about "disregarded" for tax purposes. Disregard the LLC except for legal purposes.

Please, Jack, don't be 'snarky' on any day in April . Pacun was 'over-thinking' this, something common this late in tax season.

[Pacun]

Whenever another preparer takes a different approach, I feel like I might be missing something. Thanks for this forum I clear those doubts.