Do I need to pay self-employment tax on my rental income

Tax & Legal
1

Hey, me and my husband both are w2 wage earner. We formed a LLC and have 3 properties under that LLC and earning rental income

My question, do we need to pay self-employment tax on these rental income ? We pay SS and Medicare tax on W2 wage already and it's is way over the cap. (>> $137k). In that case, Do i still need to pay separate 15.3% self-employment tax on the rental income?


Thank you

2

If you elect to treat it as a passthrough entity (as you probably should) the income will be passive (i.e. no se tax) and depreciation/interest/expenses should offset most if not all of the income assuming this is a residential property.