How deductibles in an LLC affect personal taxes on 1040

[Pat McQuillan]

Hi Guys,

I'm planning on incorporating a single-owner real estate holding LLC in Delaware/Nevada this year and am wondering what the tax advantages are of doing so. The LLC will focus exclusively on residential multi-family properties. I will be working a full-time job alongside running the LLC, so I will have two different sources of income.

I understand the LLC serves as a pass-through entity and therefore all distributions are taxed at the individual level on my 1040. Deductibles (mortgage, insurance, D&A, etc.) have already been subtracted from the top-line in the company's Schedule C, so I presume these items cannot be deducted from my personal income on my 1040?

Essentially I am hoping someone can explain in clear language exactly what the tax advantages are to owning this type of LLC.

Thanks!
Pat