Question: New Tax Plan and LLC Implications

[Pete Fiannaca]

Hey BP -

Thank God we have people in this community who eat, sleep and breathe taxes, because this stuff is going way over my head. Couple quick questions regarding being a small time landlord, the new tax plan (TCJA) and starting an LLC...

I currently run a small operation (<10 units across 3 properties). I do not have an LLC set up, but rather elected to get an umbrella policy when I started out. Here we go...

1) Without having a business entity in place, would I qualify for the new 20% pass-through deduction for net rental income, or would I need a business entity (LLC, Corp, etc) in order to take advantage of it?

2) Looking at section 179 expensing, would creating an business entity such as an LLC now (in Feb 2018), have any implications on major purchases made at the end of 2017 (heavy truck used 75% of the time for rental activity/property maintenance, applicances, etc). Would I be able to take advantage of the 100% bonus depreciation?

3) Are there any lesser-published notes or important things to consider with the new tax act that should give me second thoughts about putting my properties into an LLC and creating an actual business entity moving forward?

Thanks in advance for the wisdom, BP community!

-Pete