All Forum Posts by: Wilson Pereira

The P&L includes mortgage payments as expense but as you pointed out only interest and property taxes are deductible. Mortgage payments also include escrow that goes towards property taxes and insurance which are deductible. Basically there is an additional principal amount in there that somehow needs to be offsetted or handled differently in the P&L.

Also as a follow up to my earlier post, if a state does require SMLLC to file tax returns, would that mean paying any taxes due three times? Once for the state in question for the operating LLC, second time for the holding LLC that is a member of the operating LLC if that is also in a state that requires SMLLC to file taxes and then again a third time on my 1040.

I have my rental real estate principal and interest mortgage payments going out of my LLC bank account. I believe only interest and real estate property taxes are tax deductible. How do I account for mortgage payments in my P&L reporting for my LLC? Do accounting software like Quicken automatically take care of this or do I need to do something different to handle this correctly?

Thanks Ashish... would you happen to know requirements for NC and FL? I looked them both up and for FL it looked like SMLLC was not required to file but I could not find a clear answer for NC.

I have a holding LLC setup as a partnership and an operating LLC who's primary member is the holding LLC. For federal tax purposes the operating LLC is a disregarded entity. Do I still need to file state taxes on the disregarded entity? I want to make sure I have this setup right to avoid double taxation. I understand the operating LLC net profit/loss will flow up to the holding LLC and through to my 1040 when I file my tax returns.

I'm looking for some advice on how to best title an investment property to an LLC. I have an operating LLC registered in the state that I plan to rent the property. This is a single member LLC where the member is a holding company LLC. Can I have the holding company LLC hold title to the property and rent it out through the operating LLC? Do I need some sort of agreement drawn up between the two entities to allow the operating LLC to rent and manage the property when titled to the holding LLC? From an asset protection and liability standpoint, is it more appropriate to title the property to the operating company LLC? Any suggestions would be much appreciated.

In my last question, I meant to ask if there is anything that needs to be filed with the state or if it's just an operating agreement change to add new officer positions to the already formed LLC.

Thanks for the quick reply Mike. How does one go about creating the officer position if the LLC is already formed and Articles of Organization have already been filed with the state?

I like your second option better to avoid potential issues with deeding the property back to myself.

I had a similar question and wanted to clarify something related to the rental property title. If I deed
a rental property I currently own to my operating LLC, will I run into any problems deeding it back to
myself or the holding company when time comes to sell the property. As I understand it, I'm not a member of my
operating company LLC, just a member of the holding company LLC. The holding company LLC is a member of the operating company LLC. Would that cause see any problems? What would the title company want from me to deed this back to myself?

I'm in the process of transferring a rental property to my LLC. I have a holding company LLC that is a member of the operating LLC to which I intend to quitclaim deed the property. Just wondering if I'd have any problems quitclaiming the deed back to myself when I decide to sell since I'm not listed as a member on the operating company. Appreciate any feedback to ensure I get this right.