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Updated about 7 years ago on . Most recent reply

Amit Saini's profile image
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Amit Saini
  • from San Mateo, California
  • Member since Sep 17, 2015
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Amit Saini's profile image
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Amit Saini
  • from San Mateo, California
  • Member since Sep 17, 2015
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Amit Saini
  • San Mateo, CA
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Tax, SDIRAs & Cost Segregation

Does putting rental property in LLC help with lowered taxes?

Amit Saini
  • San Mateo, CA
Posted

Getting conflicting information on this subject. Both husband & wife on W2 income w/ one rental property.

Does creating a LLC help with a lowered tax rate for the rental income? Very sparse information on this subject.

I appreciate any response/guidance on this subject.

Amit

PS - CPA says rules are "still evolving" but generally recommends LLC formation to maximize chance of lowered tax rate.

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Jason D.'s profile image
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Jason D.
  • Rental Property Investor
  • from St. Petersburg, Fl
  • Member since May 8, 2017
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Jason D.'s profile image
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Jason D.
  • Rental Property Investor
  • from St. Petersburg, Fl
  • Member since May 8, 2017
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Jason D.
  • Rental Property Investor
  • St. Petersburg, Fl
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Jason D.
  • Rental Property Investor
  • St. Petersburg, Fl
Replied
No, an LLC has no effect on taxes. The 20% deduction is on qualified business income, and has nothing to do with who owns the investment.
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