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Updated about 1 year ago on . Most recent reply
Back-to-back Loan Arrangement
Hello everyone! I'm a newbie and will be closing on our first LLC rental property next week:). I did a 30 year cash out refi on my paid off home so I can loan that money to my LLC to buy this property cash. I have a loan agreement with the LLC that outlines repayment structure and interest. Question is, if it's a back-to-back loan arrangement, will the interest part of the repayment be taxable income to me? If not, is there a way that I can avoid that? My wife will be materially participating as the REP for this property btw. Not sure if that has any bearing in my situation. Thank you very much!!! - Mark