Owner occupied 4 unit should I form an LLC

[David Harris]

Hi,

I own a 4-unit property in Washington, DC. I used FHA 203K to purchase it and I am an owner occupant. I've been doing a decent amount of renovations over the years out of pocket. Last year a tax professional suggested that I form an LLC, just for the management aspect of this, so that I can write more of my expenses off. Apparently my w2 income was too high to write off the entire amount of money I spent on repairs last year. The tax professional said I may have been able to get back about 3K more on my refund, if I had an LLC setup. Also, this will be the first year I will have made enough off rental income, such that the DC will charge me a non-franchise tax.

I'm wondering is it ok, if I set up an LLC for all management/maintenance related expenditures and to accept payments from tenants but still have the property in my name?