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Richard, Tax Attorney
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Hi, All I have rental income from few houses and wonder

Resolved Question:

Hi, All

I have rental income from few houses and wonder there would have more tax benefit if filing such income under an corporation name other than personal income.
Submitted: 4 years ago.
Category: Tax
Expert:  Richard replied 4 years ago.

Good evening. First, you don't want to own real estate income in a C Corporation because when you go to get the money out of the corporation, you get taxed on it a second time. Thus, you would want to put your property into either an S corporation or an LLC. This would give you limited liability, but the tax aspects simply flow through. The result is that you get the same income and deductions as if you owned it individually...so no different ... better or worse....tax effects, but limited liability.

 

 

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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.

Customer: replied 4 years ago.

Thanks for your reply, my major concern is, since rental income for comapny

(LLC) can claim business expense for more tax deduction, if for personal income,

it would not have such option and have a higher taxable amount.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expert:  Richard replied 4 years ago.
You can claim the same deductions as an LLC as personally. There is no difference. Expenses are either deductible or not...it doesn't make any difference what entity structure you have.
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 47084
Experience: 29 years of experience as a tax, real estate, and business attorney.
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