Llc Tax Advantages

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i know an llc will help protect me from a lawsuit, but what are the tax advantages of hold a rental in an LLC?

thanks

Comments(1)

  • DaveT12th November, 2003

    If your LLC is a disregarded entity or a partnership, then the income and expenses from your rental activities flow-through to the member/partners.

    Your personal tax liability from your rental property activity with the LLC in place would be exactly the same as your personal tax liability when the property is held in your own name.

    The LLC helps shield your personal assets from a lawsuit arising from your LLC activities. An LLC does not really "protect" you from a lawsuit; it just limits your liability in the event your LLC gets sued.

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