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Updated over 5 years ago, 08/28/2019
Real estate professional tax benefits and LLC structure?
My husband and I own rental property together, we are both on the deed. My husband qualifies as a real estate professional for tax purposes. We want to use that to offset my income, as I am the higher earner (I have a regular job). Our CPA set up an LLC for our rental property but he says it needs to be in my husbands name (single owner llc) in order for the losses to offset my income. We can't have it as a partnership LLC, for example. Apparently this is how it works.
We want to eventually transfer the property into the LLC. The issue is that doing so would make my husband the sole owner of the rental property. He would be the sole owner of the LLC, which then owns the property, essentially.
This is not what we want. How do I keep my part of the ownership of the property while still benefiting from my husband's RE tax professional status?