Updated about 8 years ago on .
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Combing llc to save taxes.
I have a business that is run as llc. I have a rental that has negative income. If I put my rental into my business llc can I lower my taxes by offsetting my business income with my rental loss.
Also I heard that with new tax law an llc has to pay taxes on only 80 percent of your llc income. So everyone who has rentals which have positive net income should be putting it into llc. Is that correct ?
Thx so much.
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I'll assume your rental is passive and your other business is not and your LLC is a single member LLC. Putting the rental in your business LLC won't achieve anything from the standpoint of offsetting the rental's loss with the other activities gain.
No LLC is needed for the new 199A provision benefit assuming your activity qualifies for it in the first place.