I get it and they may be right but, that doesn't mean you then get to disregard that deduction and count it as income on the lending side.

So, on your tax return it nets out to $0.LLC as disregarded entities for taxes, unless you elect to be taxed differently.

Sale of the property to a single member LLC would be disregarded without the LLC electing S or C corporation tax status.Now you would have rental trapped in a corporation, is that acceptable?

Regarding transferring your personal residence to an LLC - if it is a single member LLC, it will be considered a disregarded entity by the IRS, thus, it will still qualify for the capital gains exclusion (see 26 CFR 1.121-1(c)(3)(ii)).

Do we know if the 20% deduction on net taxable income would be applied (or available) for LLCs classified as 'disregarded entities" and operating a business for "rental" activity or "passive" activity?

This is the only strategy that I am aware of that allows you to offset your W2 taxes. i am very happy to hear from you, nice to know i am not alone. if you don't mind i would like to build on some info from you, 1. how far is the place you bought for STR from your residence, 2. are you managing yourself or hired a STR management company3. what type of property you bought, condo / SFH etc 4. location and price point if any of these questions are too intrusive, please disregard them.thanks a lot 

I can't believe how brazen some people are when it comes to disregarding pretty black and white rules.

You say that we don't get anywhere near the ROI as other parts of the country, which is a true statement if you only count the operating cash flow and disregard appreciation and rent growth.  

A pet policy does not allow you to disregard the Fair Housing Act, which says (basically) you cannot discriminate against people with disabilities, which includes service animals. 

If you do, as I recall that keeps you as “one person” — I don’t do this so a bit fuzzy on detailsWell, for federal purposes a single member LLC is a disregarded entity which means the irs doesn’t recognize it as an entity and it’s a true pass through onto your personal tax return.