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Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 90971
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
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Hello, I am about to buy a second home. I will rent this home

Resolved Question:

Hello, I am about to buy a second home. I will rent this home out on a weekly bassis so I can get some income from it and use it to. What I am wanting to know is what would be the best way to own this home as far as taxes are concerned. I will have a mortgage on the house. I live in a house which I own in New York state and the second house is in Maine. Thanks -Gene
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Law Pro replied 1 year ago.

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My name is XXXXX XXXXX I'm going to assist you with your question.

Please bear with me if you believe my answer isn’t coming fast enough because I’m also working with other customers too. I apologize for any seemingly late response.


How are you going to buy the investment property - in your own name?

Because if you buy the property in your own name, place a mortgage on the property you can then later on transfer title into something else unless you get the mortgage company's consent to do such.

Customer: replied 1 year ago.
Relist: Other.
He is asking me what I am asking him.
Expert:  Law Pro replied 1 year ago.
Can you get the loan in other than your name?

Do you already have an LLC formed?
Customer: replied 1 year ago.

I can do what ever is needed to take advantage of tax laws. Can you please come to the point.

Expert:  Law Pro replied 1 year ago.

I am going to opt out of your question and open this up for other experts.

Your JA Account has not been charged for this conversation and your question is back in the queue. You do not have to stay online for the question to be active. Should an expert pick it up, you should be alerted via email and/or SMS unless you actively disable these features.

There is no need for you to reply at this time as this may "lock" your question back to me, thus inadvertently delaying other experts' access to it.

My apologies for any inconvenience and Good Luck.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. Different expert here. I look forward to working with you to provide you the information you are seeking.

If you are taking this on as a second home for investment reasons and you will be renting it out, the best way for tax purposes is forming an LLC and owning the house in the LLC. The reason for this is that all of your expenses on that house, including interest, insurance and repairs/maintenance then become a deductible business expense as does travel to the house to check on the property. The LLC also protects the house from being attacked by any creditors and protects you from being personally liable for anything that happens at the property.

Your other way to do this is in an irrevocable real estate trust, which provides maximum protection from any creditors of yours and also avoids probate issues and allows the house to pass to your heirs in the event of your death without probate or without estate tax issues.


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Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 90971
Experience: Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
Law Educator, Esq. and 14 other Real Estate Law Specialists are ready to help you

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