2007-01-04 14:39:51 · 2 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
LLC's help you limit liabilities (legal liabilities that is). Especially in rental real estate, if a tennant sues you, they can only take assets owned by the LLC as opposed to you personally.
LLC income will be taxed differently than capital gains and losses.
I will also say that I'm not sure how much into real estate you are, but if you are considered a "real estate professional" losses willl not be limited, for example, rental real estate in 2005 had a $25000 loss limitation
2007-01-04 14:46:53 · answer #1 · answered by It's me 3 · 0⤊ 0⤋
I spoke to a CPA about this and there are major benefits. An LLC will be taxed as personal income instead of corporate. Also, if you were a S corp holding real estate you will be taxed as a corporation not an individual because it would be considered a corporate asset. You should double check with your CPA.
2007-01-04 15:43:26 · answer #2 · answered by tianaramal 4 · 0⤊ 0⤋