Fellow bloggers are selling houses?

[marcus335]

@Jil

@marcus335

How can a rental be business is there no LLC or s-corp? It’s all on your personal tax return. That’s why I think it’d reuire a LLC to deduct the expenses.

Corporate depreciation and rental depreciation formula are same for an item.

There are two categories in rental. Active investor and passive investor. Active is mandatory to work on real estate at least 750 hours in a year. This is mainly for realtors, and not people like me who work on W2 income on IT.

We belong to passive investor, then sch-e comes into picture. You list all your income and expenses just like the way any company accounting works. All expenses are deducted that includes property tax, insurance, management, maintenance, depreciation etc. Only issue is passive investor can not deduct the loss from their active W2 income. In short, rental is a business listed in SCH-E (almost like K1).

Check amazon old copy “Every Landlord’s tax deduction guide by NOLO”

Tax Deductions for Landlords | Nolo

You do not need to have LLC or Corp.

Assuming the tax laws don’t change. My concern is they may change and negatively impact landlords. Who’s going to get upset about that? It’d be seen as a huge victory for the middle class at the expense of evil landlords.

[buyinghouse]

LLCs have been there, around for years, and you didn’t notice? Wow!

Caveat Emptor:
To decide to get into an LLC, you need to be disciplined, follow the rules, the so called “operating agreement”. LLCs are beneficial to real estate investors because they can enjoy the benefits avoiding double doble taxation on both the income from property and the equity upon sale by utilizing Pass-trough taxation. One mistake and you lose the protection of such LLC. It also doesn’t get you away from anybody suing you, it just cuts your losses to the property owned by the LLC.

See guys, do some homework, I see things, and read about many things, and get together with people talking about this all day long.

But you hate life insurance? That is just the entry for me, then, I apply what I have learned about other things you can’t even dream about, bummer!

I forgot to ask: How’s that government working for you?