New Tax Law and rentals

[Leland Dunn]

With the new tax law going in effect in 2018 it seems nobody knows the specifics of how all this will play out, including the IRS. I did find an article that states:

You qualify for an income tax deduction equal to 20% of your rental income if:

• you operate your rental business as a sole proprietor, LLC owner, partner in a partnership, or S corporation shareholder, and
• your total taxable income for the year from all sources after deductions is below $315,000 if you’re married filing jointly, or $157,500 if you’re single.

We own 3 rental properties, all single family homes with the titles in our names. We do not have an LLC, just rent the property with landlord insurance and an umbrella policy. Does this make us the sole proprietor? We are trying to distinguish if we need to start an LLC to benefit with the new laws. Thanks for all your help on this forum.

Leland