All Forum Posts by: Gina Mann

Hi, would like to hear from experienced investors! TX rental property owned by TX LLC. We have Ohio parent LLC owned this TX LLC. Our living trust owns Ohio LLC. Tx residents filing married jointly. My lawyer recommended Ohio parent LLC instead of Wyoming.

it looks like we can file as disregard or partnership 50 50? 

Hi, my lawyer recommended Ohio holding LLC instead of Wyoming LLC (she said same anonymity and protection but no annual filing). Does anyone have Ohio parent company instead of Wyoming? Thx.

Please talk to an attorney, not a CPA for legal structure. Setting up an legal entity requires more than just the shell company name but you will need legal docs in case of lawsuits. And you want to make sure the structure is correct when a holding company is involved. Unwinding is costly and painful. Good luck!

Please don't. This is a fraud. He is not using your property as a place of his business or a part of his business, but wants to write off as a business expense. 

A bit unclear what you would like to do but assuming you are renting to a tenant ....LLC is a legal entity, not a tax entity. For IRS, considered a disregarded entity. So if you have a rental property, you can report via Schedule E even if you don't have an LLC. Many choose to have an LLC for legal protection, not tax purposes. Same expenses regardless. Yes, you can have depreciation, insurance and property tax expenses if you turn a primary home into a rental but income significantly below market is NOT recommended. If you get audited, it will cause serious pain. Many do report paper loss with rent at market. Home office deduction is available if you have a rental property and designated space exclusively used for rental property business. If you try to rent out own house through your LLC, I recommend NOT to do. Please talk to a tax lawyer and CPA for a legal strategy. I had a tax strategy session ($450 lol) with a lawyer and had a similar question, not the same tho. If change things around with a corp and a business, it was possible but too much hassle not worth my time and money. You can maybe house hack and deduct a portion legally. Or rent the current one, move out and get a new primary. Keep on searching and you will find a legal way! Good luck!

It depends! LLC is for legal protection so the initial LLC is where the property is located. Some people have multiple layers of LLC (different states) for various reasons. Please talk to an attorney and CPA to figure out the best legal structure for you. Number of properties in each LLC is up to you but many advise to look at the equity of each property in a LLC. So you can put multiple properties in one LLC depends on the equity you have and other factors. Bottom line if you are sued, all eggs in that one LLC basket are at risk. Multiple LLCs and layers of different LLC can be costly sometimes with diff filings also. I have talked to several tax lawyers cost $$$$ lol and each suggested a different strategy for various reasons. For me, I want max protection even if it costs me $$ and hassle to file w multiple states plus a headache to track. Some wants simplicity and some protection so it is up to you. If you got a mortgage as primary, there are limitations when trying to put a property into an LLC. Normally ok after a year but please check. Good luck!

please talk to a CPA but rental incomes are normally reported via Schedule E. At the end of the form, it will ask you to add the net amount (rental income minus expenses) to 1040. With depreciation and other expenses, many show paper loss which can sometimes offset other types of active income with limitations and if your income is under a certain $. Insurance, utilities if u paid, property taxes, even tax and legal, home office, and so on all rental property related costs offset the rental income. Check out schedule E expenses section where expense catagories are listed. Tax softwares and YouTube videos by CPAs and tax attorneys can also help if you cannot get a CPA. Good luck!

Hi, We have 3 good friends who want to sell their primary house to us off market since they are retiring, want to relocate to FL and do not wish to bother with rental properties. We are thrilled (especially in this hot TX market) and is about to close one of the deals as a primary. We will have to purchase the other 2 houses in about 1.5 yr. Should we take 401k loan for down payment (50k)? Should we refi our current house to take out 100k equity (kinda do not want to cuz we have a great rate 2.75 as a primary)? Can my sister buy one with us (co investor? Not sure how this works. We want to refi and eliminate her ownership after a yr or so) or should we go with a hard money lender and refi later? We never had an issue getting a loan and financially stable with strong w2 income & good credit. The houses are in very good area DFW, about 10 yr old and around 300 to 360k fair Value. The sellers are ok with 5% down all off market but don't want to do installment sale just want to sell retire and move without hassle. 

we are thinking about taking 401k loan 50k, purchase the next one as a primary 5%down again  (after a year or so since we are about to get one as a primary) then buy the last one as an investment. The third house might be hard to come up with 20% down as an investment. Need to eat ramen noodles lol. Another reason for 401k loan is that we want to reduce taxable income to offset w2. 

Thanks for your advice in advance.

Hi, we are about to rent our first property but there is a pool. Do you have tenants sign some kind of legal doc that they need to swim at own risk?? We have an agreement for maintaining and cleaning the pool but not sure what to do with any potential liabilities like drowning...if you guys have any experience or advise, please share. Thank you...

hi we are thinking about turning our primary house into a short term rental (have lived for two yrs) and getting a new primary near by (10 min away different city). The issue is that we really love the school and the kiddo doesn't want to change school. We assume since we still own this house and no short term renters will be sending kids to school, we can still go to the same school? Just gotta pick up and drop off since there will be no school bus coming to the new primary residence? Any one had similar experience with school when turning primary into short term rental Airbnb? Thx!