All Forum Posts by: Nick Murray

@Nick Murray

Is this a single member LLC? If so, then it is a pass-through entity. So it may be a mute point.

Do you file taxes as a real estate professional?

@Nick Murray

You should look at the two scenarios from a tax standpoint and a legal standpoint.

Legal - Will you be better protected if you invest through an LLC instead of your personal name.
If you are investing in a syndicate as either a member in an LLC or a limited partner in a limited partnership, the decision of investing personally in your own name or in your LLC may not matter.
This would be true so long as the syndicate is properly set up.

Tax - Will you be taxed differently based on either scenario. If there is a difference, which one is the better alternative.
If your LLC is set up as a single member LLC, the answer to this question may not matter.

It would be good to consult with an attorney/CPA for confirmations since your situation may be unique.

You should speak to your CPA. IF you invested into the syndication via your llc should use ein. Also, maybe you do some purchase for that llc so you can deduct them like maybe going to real estate conference, or buying some sort of software to track your investment or market reports. Spend an hour with your CPA so you setup a tax procedure and to maximize your tax savings. This is usually a good time to sit down with your CPA. I have our controller and CPA and myself meet before tax time, after time and right before the New Year. 

@Nick Murray

What would be the primary goal in purchasing under the LLC? I dont want to assume, but is it for tax or protection purposes? Have you considered establishing a trust and having the trust be the owner? Every state has different trust laws. This method may provide you with the goals you are trying to achieve as trusts can be customizable.

There is No tax advantage to buying any property in an llc....any expenses deductible to an llc are deductible to that same person.

As a for buying a primary in an llc....no advantage and a bunch of disadvantages...you’d lose your section 121 exemption when you sell, no homestead tax exemption, no conventional/fha financing if you want to refi.

 Primary residence?