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I have question about LLCs to be used for a condo that I…

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I have question about...

I have question about LLCs to be used for a condo that I would rent part time. Is htere someone I can discuss this with?

Accountant's Assistant: Because laws vary from place to place, can you tell me what state the property is in?

The property is in Colorado. One question is how the mortgage deductoin works? Do you only get to deduct income from the LLC (which is rental). Or can you use it for personal income as well.

Accountant's Assistant: Has any paperwork been filed?

Yes I created an LLC. I'm trying to decide if indeed I should get the mortgage in the name of the LLC. It depends on tax ramifications and also whether indeed I get extra protection through the LLC if I personally am securing the loan.

Accountant's Assistant: Anything else you want the lawyer to know before I connect you?

I also want to know how if lmited capital gains are still tax free after two years if property is in an LLC. Also tax implicatoins when it is sold.

Submitted: 4 months ago.Category: Tax
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Answered in 28 minutes by:
12/5/2017
Tax Professional: Richard, Tax Attorney replied 4 months ago
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 56,597
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Hi! My name is Richard & I will be helping you today! It will take me a few minutes to type a response to your question. Thanks for your patience!

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Tax Professional: Richard, Tax Attorney replied 4 months ago

Good evening. The LLC will be a pass-through entity...which means that all the tax attributes will simply flow through to you. So, the tax implications for you will be the same in the LLC as if you owned the property individually. And, you do get the added benefit of limited liability with the property in the LLC which means that if there is a problem relating to the property, your personal assets won't be at risk; rather, only the assets of the LLC are at risk.

Thank you so much for allowing me to help you with your question. I have done my best to provide information which fully addresses your question. If you have any follow up questions, please ask! If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service as Good or Excellent (i.e., 4 or 5 stars)(hopefully Excellent/5 stars!). Otherwise, I receive no credit for assisting you today. I thank you in advance for taking the time to provide me a positive rating!

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