Tax saving via LLC and the Real Estate Pro. title?

[Sam Na]

Hi everyone,

This is my first post on BiggerPockets and I'm very excited to meet you all and to have the opportunity to learn from you. 

I'm a real estate enthusiast and I own a couple rentals. I recently met with a financial advisor who suggested me to open an LLC to maximize the tax benefits from my rentals. In particular, in order to be able to deduct my real estate loss yearly, I should have the role of 'real estate professional' on the LLC, otherwise my real estate income will be considered as a passive income. While I spent time on my rentals, educating myself in real estate, and hopefully acquiring more properties, however, my daily job is not real estate! I also don't have any real estate license. I was wondering if I still can be considered as a real estate prof from the IRS standpoint? More generally, would the idea of adding my couple properties to an LLC be a valid tax saving strategy?

Thanks very much for all your great advice in advance. 

-Sam 

[Taylor L.]

Originally posted by @Wayne Brooks:

1) an llc has No tax advantages for real estate

2) you won’t qualify for the real estate professional status

Talk to a CPA instead. 

#3 consider dumping the financial adviser. A real estate focused CPA will give you better advice, the adviser gave you poor advice that may have showed their lack of understanding of real estate or taxation.