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Updated over 5 years ago, 04/29/2019
Pass through Depreciation
Going to be diving into some rentals here in the next few weeks. I'm actively making deals, but most out this way want too close to Market value as supply is diminishing. I have built an LLC for my active Flipping Business, however thinking of keeping these new coming Rentals in my Personal Name for Depreciation purposes.
My question for my BP Family, and really the only thing holding me back in this structure is, can the Depreciation of 27.5 years be passed through an LLC to the Sole Member as it would in the Personal Name?
Reason i'm asking is if I pay all cash, I can get 80/20 Cash out Refi with no seasoning in a commercial aspect through my business but if done on a personal basis, that seasoning of 6-12 Months follows Fannie and Freddie's guidelines.
Has anyone else done this before? What is your take on this?
Also, if Syndicating, do you syndicate Rentals through Personal or Business Name? Does depreciation work the same? Thanks guys, and looking forward to these responses.