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I make too much money to get my rental property deductions.

Customer Question
If I deed my rental...
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: 9 years ago.Category: Tax
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Answered in 24 minutes by:
8/5/2008
Tax Professional: Marvin,EA, Enrolled Agent replied 9 years ago
Marvin,EA
Marvin,EA, Enrolled Agent
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Satisfied Customers: 1,672
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What type of a LLC (sole proprietor, partnership, C Corp., S. Corp.) do you own?
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Customer reply replied 9 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?
Tax Professional: Marvin,EA, Enrolled Agent replied 9 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.

Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
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