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Updated over 4 years ago,
Business Structure and expenses
I currently have one property rented out, I own and manage it under one LLC (I am the only partner). My question relates how to properly pay for and deduct business expenses across multiple entities. Especially if the expense is a piece of equipment that is used for your business as a whole and not just one property.
If I am wanting to buy equipment for the business, say a computer or software or a lawnmower, that is not directly related to a particular property - Is it ok to pay for it with my personal account and write it off and not pierce the veil?
What if I buy a second property in another LLC, how would I expense it then? Would I need to pay for it partially out of each LLC's account?
What if I buy a second property under my own name and rent it out?
Do you all create LLC's as a holding company to make these types of purchases from?
Thanks all!