I'm putting my houses under a new LLC. How can I make it so no one can associate me with them. 1040 mostly?
I have put the deeds under the LLC. Now I want to disassociate myself from their loans, tax reporting so that I cannot be seen as owner. How would I go about that?
How do others do this? Michael Jackson for example? Much of his holdings are unavailable to the public. What did he do that I can do?
- Hank Roitman, EALv 41 decade agoFavorite Answer
Others are correct. Real estate in an LLC is as STUPID as it gets. Well, almost as stupid as real estate in a corporation.
Now, the way to do it is to create an IRREVOCABLE Trust. By so doing, you lose ALL control. You create a separate entity and turn control of it over to someone else ( a bank or trust co.) who do this professionally. If there is any semblance that you maintain control you have a big problem with many people. Not just IRS. Does forfeiting control suit your plan?
Since there are loans, you can forget it. The banks will not allow it. You owe them, but if they let you put the properties in this kind of trust, you no longer own their collateral. If the situation were the other way around, would you let someone who owed you to just sign over your collateral?
Do not confuse this with a REVOCABLE (aka living) trust. This is a disregarded entity and is associated with you at all levels while you are alive.
By the way, ask yourself this question: since you are not Michael Jackson (or anyone similar) what great value do you own that you do not want others to know about, yet is not so precious that you are willing to engage professional help (attorney or accountant) to protect?
Now, a suggestion: since you already did the LLC thing, you are badly advised. Let me say that again: SOMEBODY IS GIVING YOU TERRIBLE MISINFORMATION!!!. If it is you picking other people's brains or listening to the mailman's bartender's brother-in-law, it is just a matter of time till you find yourself in over your head.
Before you do another thing, stop getting your information from your current sources and take some classes. Legitaimate classes, not "How to get Rich Quick" classes.Source(s): 20 years as a tax professional ,straightening out HUNDREDS of misinformed people's messes.
- Bostonian In MOLv 71 decade ago
Dissolve the LLC and put them back in your name. This will do absolutely NOTHING for you, aside from cost you money, time, and hassle.
If the homes are owned by an business with a different name from yours, you must file a fictitious name cert with the county recorder specifically so that you can be located as the legal owner. If it's owned by a different legal entity, you will be tied to you by the entity's EIN which is linked to your name and SSN.
The income would go on your Form 1040, Schedule E with or without the LLC.
- Anonymous1 decade ago
Ain't going to happen. The LLC is disregarded for tax purposes and the IRS will expect you to put the rental income on your 1040, schedule E.
- Anonymous1 decade ago
You could have a third party hold them in trust for you. In my city a well know celebrity was the owner of the building leased by a major department store chain and nobody knew because title was held by a nominee. If you feel the need for something like this, pay for professional help setting it up.