I have two rental properties one in nys and one in nj.?

nys one is in my llc's name and the one in nj is not in my name and not my llc's name. im thinknig about doing the same to my nj rental property because it further protects you from a lawsuit, but someone brought up the taxes would brdifferentt when the real estate is in my llc's name and not my own. we don'tt live in these propertiess.

1 Answer

  • 1 decade ago
    Favorite Answer

    Are you speaking of federal taxes or county taxes?

    If you are speaking of county taxes it matters not who own the property, these taxes are accessed based on the value of the property as accessed by the county assessor's office.

    If you are speaking of the federal income tax then that is based on how your LLC is set up and how you personally accept funds through the LLC. If you set your LLC up where it pays it's own federal income tax and you receive a salary that is one scenario.

    You would have to check with the person that set your LLC up to find out the tax method used. Your CPA or tax consultant should be able to explain this to you.

    Even though you are attempting to eliminate the possibility of being sued, it is equally important to set this LLC up where you get any tax advantage.

    It might be best to place all your property into one LLC thus placing it in a position to purchase additional property without you signing as a personal guaranty on the mortgage loan.

    For any tax and legal matters you should always consult your tax consultant and attorney.

    I hope this has been of some benefit to you, good luck.

    "FIGHT ON"

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