Accounting for Roommate Rent (Mortgage and LLC Considerations)

[Ryan Quint]

Hi all,

My significant other recently purchased a 5BR primary residence and is renting out 4 rooms to roommates. We have an LLC, but the home is under her name (we understand you cannot put mortgages under LLCs). While the home mortgage is not under the LLC, we are trying to better understand how the LLC can be used from a tax perspective. Our questions are regarding how to account for roommate income (rent) and tax deductions (depreciations, mortgage payments, repairs, etc.) using the LLC... We have the following questions:

- How does the LLC come into play here, since we have the primary residence mortgage under her name? Can the LLC be used (tax-wise and liability-wise)?

- Should the rent payments be made out to the LLC even though the mortgage is under her name?

- Do we just keep track of all expenses and depreciation for the portion of the property that is rented out, even though the LLC does not have the mortgage under it?

Any information you can share would be greatly appreciated! Thank you!

Ryan