Thanks Bob Corker for pushing 20%

[Account Closed]

i thought 20% to LLC real estate was already included, but thanks anyway! it's odd that nobody on BP seems to really be talking about all of this?

[Linda Weygant]

Originally posted by @Account Closed:

@Linda Weygant i'd be interested to get your take on this now that it's basically a done deal. it seems the old adage of putting your properties into an LLC makes no difference for tax purposes is no longer true. It now seems its now very clearly financially beneficial to get your portfolio into an LLC to take advantage of this 20% deduction? How do you think that works? You just take your taxable year end income and reduce it by 20%??

Seems like for REI'ers nothing much else changes though with this tax bill (other than your bracket if affected)....we can still deduct property taxes, mortgage interest, etc.

The common thought right now is that continuing to hold your property personally will probably be okay.  The wording of "pass-thru" may include sole proprietors and regular Schedule E filers.  There are still too many unknowns at this point to say for sure and, of course, we never really know anything until it gets tried in court.  Once the politicians are done popping the cork on their champagne bottles, they will hopefully clarify some of these grey areas.

I've had zero time to comb through this in detail though.  I've skimmed enough of it to get the basics, but I'm focused on getting geared up for 2017 at this point and trying to absorb what will be happening for 2018 is obviously critical and will happen just as soon as I can get some time to sit still for more than 20 minutes, but 2017 is closer to front of mind for me right now.

I also just bought a flip.  Because apparently I'm crazy.