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Updated about 7 years ago on . Most recent reply

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8
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Amardeep G.
  • Washington, Washington DC
0
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8
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Sole proprietorship & New tax law

Amardeep G.
  • Washington, Washington DC
Posted

Hi all, 

My understanding of the new tax law is that it gives a 20% across the board deduction to landlords who are running their business as a recognized passthrough entity (LLC, sole proprietorship, etc.). I have no interest in filing for LLC and doing all the additional reporting and legwork that requires so my plan was just to list myself as a sole proprietor, since my wife is/will not be involved in running any rental properties we acquire.

I just purchase my first investment property - My question is, if I list both myself and my wife on the title for the house (the mortgage is in my name only), can I still be considered a sole proprietor for tax purposes?  Has anyone run into this before?   I definitely will talk to a CPA (if anyone has any recs in the DC area please PM me), but thought I'd get a general idea first. 

Thanks! 

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