Tax opinions for SFR

[Gary Bonfiglio]

We have a SFR and a contracting business. Questioning whether to run the rental property through the business or go with a separate LLC mostly for tax benefits personally and for the business-

[Katherine Serrell]

Im not a lawyer but I personally wouldnt put the rental under the contracting business. I would use a separate LLC. If someone in your contracting business sues you and you had the house in the LLC, they would be able to take the house. The tax benefits will likely remain the same in both scenarios. The only downside to having two llcs is the fees for the extra llc but again, I wouldnt have anything in the contracting LLC that I wasnt willing to loose due to the nature of the business and the potential for lawsuits in that arena. Having a second llc will act as an additional, very affordable insurance policy.