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I own two income properties. One is under our business name…

I own two income...

I own two income properties. One is under our business name which is an LLC. The other we just purchased and did not get the mortgage in the business name but our personal names. Can I take repair deductions on the property that has a mortgage in our names. We are claiming rental income.

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Answered in 1 minute by:
3/18/2018
Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,647
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Hi. My name’s Lane.

...

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA in finance, a BBA, and CFP & CRPS (Chartered Retirement Plans Specialist) designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

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I'll post that in just a few moments. Then, let me know if you have further questions on this.

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Yes, you can always deduct, against rental income, any rental expenses ... As an LLC member (unless taxed as a C-Corp) this all passes through on schedule E, a personal tax issue.

...

Although you may have more corporate liability protection at the state level (all corporate law is state law) with the LLC, from a tax perspective this is all passive income and loss, flowing to your personal return

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Customer reply replied 4 months ago
for all purchases I made regarding the rental home that the mortgage is not in my name I should put in my business account as expenses? I paid cash or out of my personal account for many items how to I disperse back to me from business account?
Customer reply replied 4 months ago
Hello - do you answer follow up questions?

How you financed the rental activity isn't important ... it's the use of the proceeds that matter. If you are reporting the income, you can deduct any associated expenses.

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Now, if both you and the wife are LLC members THAT's a partnership and you'd be filing a form 1065 for the partnership. (the net result will still be the same. Partnerships and Single member LLC's don't pay taxes) - everything still flows to the 1040.

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Then the one not owned by the LLC will be reported on schedule E

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But either way, it's (1) whether the expenses WERE rental expenses or not that allows for the deductions that determines the deductibility and (2) the taxation will dependon whether the LLC is a single member (disregarded entity) or multiple member (partnership)

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(THe math works out the same either way

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Customer reply replied 4 months ago
Thank you.

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be compensated by JustAnswer for the work here

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Thank you,

Lane

Lane
Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 14,647
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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Lane and 87 other Tax Specialists are ready to help you
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Thanks much

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