New Rental And Tax

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Need some info/advice on a situation I am currently in. Here's the scoop.

I upgraded to a newer home and kept the old one for a rental. Move at the end of Sept. Home has not rented yet. I am going to set up LLC to hold the property.
I have contacted a few cpa's and they were wishy washy with their answers.

MY Questions:
1) Does it matter if it is just me or me and my wife on the LLC?
2) I have been putting money into the rental since we moved out, will i be able to deduct that on my taxes since I paid for out of my personal checking acct and not a business acct for the LLC. I have save ALL the receipts.
3) Does the job of the CPA mostly consist of filing. All the ones I spoke with talked about what they charge to file. One offered to set up my LLC for $400 but I know i can do it for the state for much less.

4)anyone know of any links dealing directly with LLC, rentals and taxes?

Thanks for you time and knowledge!

CJS[ Edited by DaveT on Date 11/12/2003 ]

Comments(2)

  • DaveT12th November, 2003

    Quote:1) Does it matter if it is just me or me and my wife on the LLC?It might. If your state allows a single member LLC, and your state is not a community property state, then your LLC can be a single-member disregarded entity. If both you are your wife are members, then your LLC is treated as a partnership. What works best for you depends upon your local state laws, your investment strategy, your asset protection requirements, and your estate plan.

    Quote:2) I have been putting money into the rental since we moved out, will i be able to deduct that on my taxes since I paid for out of my personal checking acct and not a business acct for the LLC. I have save ALL the receipts.Generally, once you place the property "in service" all of your ownership and "operating" expenses can be used to offset your rental income. Money spent on the property BEFORE it is placed in service, is generally added to your cost basis and recovered through depreciation.

    Quote:3) Does the job of the CPA mostly consist of filing. All the ones I spoke with talked about what they charge to file. One offered to set up my LLC for $400 but I know i can do it for the state for much less.You can use a CPA for accounting, tax reporting, and establishing your business entity. You pay for whatever you hire the CPA to do.

  • cjs11113th November, 2003

    thanks,

    anyone have a cpa they would recommend in the phx area, specifically chandler or gilbert?

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