Large syndication company, higher fees than most other syndicators.

Rent payments from the medical LLC are fully deductible as a business expense, while the property-owning LLC will report the rent as taxable income, which can be offset by deductions for expenses like mortgage interest, property taxes, maintenance, and depreciation.To ensure compliance, document how FMV was determined—using market comparisons, an appraisal, or similar data—and draft a formal lease agreement outlining the terms, rent amount, and responsibilities.

In 2025 the bonus depreciation rate is 40%.This means that if you bought a property for $1M in 2025, did a cost seg study and found $300K in eligible assets that you could depreciate, you could take 40% of that $300K as bonus depreciation to offset your income in the first year.40% of $300K = $120K.You then apply that $120K to the owner’s personal tax rate to find the final amount that they can defer in year 1.If your tax rate is 37%, you can defer $66.6K.This is a big deal even at the 40% bonus depreciation rate this year.

If you signed a 3% buyers representation agreement and the seller is only paying 2.5% and nothing more then just ask that your agent amend the buyers representation to 2.5% so you are not on the hook for the last %I will say, some agents are VERY strict and won't budge from 3% fee which in my opinion is kind of ridiculous.If you are my client and the seller is only paying a 2.5 % fee I won't ask you for the additional 0.5%.

I would search the BP forums because your tax / legal related questions likely have already been asked.However, it doesn't hurt to still ask the forum what your questions are.

My strategy incorporates asset protection measures like LLCs, specific trusts as well as professional property management to spread risk and ensure quality operations.As well as using tax codes to my benfiitSection 179, IRC Section 162, Cost Segregation and Bonus Depreciation and later 1031 them out for larger projects. 

With the recent tax law changes in capitol gains taxes in Canada and this property not being their primary residence.

You can also hold money for maintenance, capex, taxes, insurance, or other projected expenses.

Additionally, the property includes an outdoor swimming pool.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.