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Updated 6 months ago,

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Maria Johnson
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4
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How to set up? Trusts, Depreciation against W-2, passive income

Maria Johnson
Posted

We currently have rental properties that are mortgages in our name.I am a real estate professional, so we utilize the properties' depreciation to offset my spouse's W-2 income. We are seeking to establish an estate plan to transfer these mortgages to Trusts without forfeiting tax benefits or triggering due on sale clauses.
Once these mortgages are paid off and/or generating more cash flow, we intend to use them as passive income for retirement and retain the option to access the equity for emergencies. 

Would aslo need to have the debts separately from personal liability so it does not interfere with future personal financing. How do others set theirs up? I hear LLC, no LLCs but umbrella policies and keep pulling out equity to help with asset protection.

I have 6 rentals that break even and do not cash flow but help with depreciation but also plan to pay off in next 15 years.  After paid off would bring in about 10-15K a month in rent and equity of 2 mil today's numbers (hopefully double in those 15 years).  4 rentals in texas 2 out of state.

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