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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.
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.
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