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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 992
Experience:  Certified Public Accountant
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My brother and i are planning on buying and renting out

Customer Question

My brother and i are planning on buying and renting out properties in order to create a passive income in the coming years. While the idea is still in the works, the question of whether or not to create an LLC and rent homes under the LLC would have any tax benefits or disadvantages. So my question:
Should we create an LLC?
Submitted: 4 months ago.
Category: Finance
Expert:  Mark Taylor replied 4 months ago.

Yes, you should create an LLC. The benefits associated with an LLC is liability protections. Your share of the income or loss would pass through to you as a rental income or loss.

Expert:  Mark Taylor replied 4 months ago.

With or without an LLLC rental losses are limited once your AGI reaches $50,000 for individuals and $75,000 for married filing joint. The loss would just carry over to the next year and would be available if your income dropped or if you disposed of the property.

Expert:  Mark Taylor replied 4 months ago.

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