That's another benefit to the government and the system of inflation.

Consult a tax pro to maximize these benefits!

Property Management:When I initially began learning about the power of real estate and passive income I assumed I would also be a passive investor and reap the benefits of financial freedom.

From what I understand an LLC is a pass through entity and does not provide the same write off benefits a s or c corp does. 

@Brad Herb Investing in a syndication via a Self-Directed IRA (SDIRA) offers tax advantages but comes with fees and limitations:Advantages:Tax Benefits: Gains grow tax-deferred (Traditional SDIRA) or tax-free (Roth SDIRA).Avoid Penalties: Keeps funds in the IRA, avoiding early withdrawal penalties.Diversification: Adds real estate syndications to your retirement portfolio.Disadvantages:Fees: Setup, custodian, and administrative fees can reduce returns.UBIT: If the syndication uses debt, income may be subject to Unrelated Business Income Tax (UBIT).Complexity: Strict rules; all income/expenses must flow through the SDIRA.Illiquidity: Syndications are long-term, locking up funds.Use an SDIRA if the investment is significant and the UBIT impact is minimal, especially with a Roth SDIRA for tax-free growth.Remember that RE, outside of retirement accounts, provides the biggest tax benefits.This post does not create a CPA-Client relationship.

Yes the financial benefit is attempting, but I do want to understand all the legal consequences, including insurance issues before making a decision.

Thanks folks, it seems like overall it doesn’t make the most sense to start an LLC for real estate purposes due the cost and complexity, with few benefits here in California.

It will familiarize you with the basic terminology and benefits.

Sounds like they have a back door deal where the lender or loan officer and builder or realtor all benefit from using each other (which is illegal).

You could also wWork closely with a CPA to maximize depreciation benefits and reduce your taxable profit for 2023 and beyond.