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Rakhi Vasavada
Rakhi Vasavada, Financial and Legal Consultant
Category: Finance
Satisfied Customers: 4545
Experience:  Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years
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Ok, I own a business (plumbing) and would like to start a

Customer Question

Ok, I own a business (plumbing) and would like to start a business buying houses to flip or rent. If I put the business in my wife's name, will I be able to write off the labor and materials my plumbing company uses to fix the houses for the other company, or will tax view my wife and I as a single entity? I am sole proprietor, she will be LLC
Submitted: 1 year ago.
Category: Finance
Expert:  Rakhi Vasavada replied 1 year ago.

Dear Friend,

Hello and welcome. Thank you for providing an opportunity to assist you.

YES -- You will be able to do that. Let me explain. From what I understand from your situation, the plumbing business has a proprietor, i.e. you who owes this business.

The other business, which will buy houses to flip or rent would be in the wife's name, and she will be a LLC. In this scenario, I also understand that your wife would be a single member LLC. Single member LLCs are disregarded entities in the eyes of IRS and all money i.e. profits or losses will flow through your Wife's individual return.

Therefore, You WILL BE able to write off the expenses in your account. Your wife and YOU would be different business entities. You being a proprietor and she being a LLC are separate legal entities and tax cannot view you as one.

I am sure this would help.

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Warm Regards,