Multi-Family commercial syndicate investing with a personal LLC?

[Dustin Karas]

I'm considering investing with a commercial real estate syndicate. The syndicate is an LLC itself. Would it make sense for me to invest through a personal LLC? I don't believe it would provide any more liability protections per se, but I thought it might let me start using some expenses to create tax deductions for business that might have otherwise been considered personal expenses with no tax deduction value.

Thoughts?

[Percy N.]

@Dustin Karas, by a personal LLC, I assume you mean a single member LLC.

If you are looking to invest in a syndication as a passive investor, then it should not make any difference since the LLC will be passthough (check with your tax professional).

However, there are other benefits like a little bit of anonymity, possible layer of defense from personal identity theft (the syndicator will have your LLCs EIN vs your personal SS# if they are hacked).