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Updated about 7 years ago on .
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#5 Medium-Term Rentals Contributor
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- Youngstown, OH
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LLC on owner-occupied rental property
#5 Medium-Term Rentals Contributor
- Investor
- Youngstown, OH
Hello! I have 2 questions regarding LLC's, and I can't find the answer on Google or BP.
1) I rent the spare bedrooms out of my personal residence. For this reason, is it advantageous to put my house into an LLC? Do the pros/cons differ since I run a business out of my home?
2) If I were to place my home into an LLC, would that debt still factor into my DTI ratio?
TIA!
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
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#1 Tax, SDIRAs & Cost Segregation Contributor
- Tax Accountant / Enrolled Agent
- Houston, TX
No tax advantage for an LLC in your case.
There could be some legal reason, but I doubt so. The whole premise of legal protection is to separate assets, but here your assets are one indivisible property. This one is for attorneys, and I'm not one.