Tax Structure Overview
A summary of entity classification and federal tax reporting structure for lender reference.
Entity Classification
Algonquian Real Estate, LLC is organized as a Connecticut Domestic Limited Liability Company.
For federal income tax purposes, the company is classified as a multi-member limited liability company and is treated as a partnership unless an alternative election is made.
The entity files:
• IRS Form 1065 – U.S. Return of Partnership Income
• Schedule K-1 issued to members
The company is a pass-through entity for federal tax purposes.
Federal Tax Reporting
The company reports income, deductions, and depreciation at the entity level.
Taxable income or loss is allocated to members in accordance with the Operating Agreement.
Depreciation is calculated in accordance with applicable federal tax regulations for residential rental property.
All required federal filings are completed in accordance with IRS deadlines.
State Tax Compliance
The company maintains compliance with:
• Connecticut annual reporting requirements
• Applicable state-level filing obligations
• Business registration requirements
The company maintains good standing with the Connecticut Secretary of the State.
Property-Level Tax Considerations
Property-level financial performance incorporates:
• Real estate tax obligations
• Insurance costs
• Depreciation allowances
• Operating expense treatment
These items are incorporated into underwriting assumptions and financial reporting.
Recordkeeping & Documentation
The company maintains:
• Organized accounting records
• Annual tax filings
• Depreciation schedules
• Entity formation documents
• EIN confirmation documentation
Supporting documentation may be provided during active underwriting review.
Notice
This summary is provided for informational purposes only and does not constitute tax advice. Tax matters are handled in consultation with licensed tax professionals and in accordance with applicable federal and state regulations.