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Updated almost 7 years ago,
Sole proprietorship & New tax law
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!