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Mark Taylor
Mark Taylor, Certified Public Accountant (CPA)
Category: Finance
Satisfied Customers: 2043
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: 11 months ago.
Category: Finance
Expert:  Mark Taylor replied 11 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 11 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 11 months ago.

I hope you found this information to be beneficial. If this answered your question please take a few moments to rate my response. A rating is needed in order for me to receive credit for helping you today. The rating bar is located at the top of the page – ranging from 1 to 5 stars. If you need me to clarify aspect of my response or if there are additional areas of the question that you would like me to consider please let me know. I would be happy to continue the discussion. It has been my pleasure helping you today.