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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
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Experience:  Enrolled to Represent Taxpayers Before The IRS
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I make too much money to get my rental property deductions.

Resolved Question:

I make too much money to get my rental property deductions. If I deed my rental property over to my LLC can I claim the expenses there?
Submitted: 8 years ago.
Category: Tax
Expert:  Marvin,EA replied 8 years ago.
What type of a LLC (sole proprietor, partnership, C Corp., S. Corp.) do you own?
Customer: replied 8 years ago.
I'm not certain. It's a Nevada LLC that we opened through LegalZoom. My wife & I are the only members of the LLC. So I'm thinking that it's a partnership?
Expert:  Marvin,EA replied 8 years ago.

In order to add the expenses from your rental property to your LLC partnership you or your spouse must material participate in the rental real estate activities for more than 750 hours of service during the tax year and more than one-half of the personal service performed in trades or businesses by you during the tax year must involve real property trades or business.

A closely held corporation qualifies as a real estate professional if more than 50 percent of its annual gross receipts for the tax year are from real property trades or businesses in which it materially participates.

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