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I buy real estate to rent it out though my LLC?

can i take off my closing costs as a deduction on my tax returns and well as the cost of buying it??

4 Answers

  • 10 years ago
    Favorite Answer

    This question would be decided by how the LLC is set up? Either you personally or the LLC may take this deduction provided it was an out of pocket expense. In other words you can not take or deduct from you income tax something you did not pay.

    The cost of buying the property has a built in deduction called depreciation. A certain assets is deemed to have a lifetime value, over the life of your ownership this would be taken out each year as the assets depreciate.

    Since you did not indicate how the LLC is set up for tax purposes then it would be difficult telling you which might take this deduction you or the LLC.

    In tax and legal matters you should always consult with your tax consultant and attorney.

    Purchasing property through a LLC is a very good way to purchase property. You have to remember that this LLC is a different person with, it's own bank account both checking and savings. You might consider having all rent go to the LLC bank account.

    Once the LLC has sufficient income and assets the LLC could qualify on it's own to apply for and be approved for a mortgage loan without you personally guarantee for the mortgage loan.

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

    "FIGHT ON"

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  • 4 years ago


    Source(s): Rent-To-Own Homes -
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  • hunke
    Lv 4
    4 years ago

    uncertain I evaluate myself an "expert", yet we've had a duplex for 18 years, so we've seen some issues... My advice for a condominium property could be a multifamily (3 or 4) unit the place the lease extra effective than covers the loan. The tax breaks will offset that besides. Banks evaluate in basic terms 75% condominium earnings because of the fact human beings circulate. A multifamily a minimum of facilitates throughout the time of those situations you would be promoting, doing upkeep etc. The housing industry is reducing at present, so i could be very careful identifying to purchase. you should be identifying to purchase on the "intense" end of the size. supply it some months. We offered our property a the top of a housing develop & a number of years later have been "$fifty 3,000 the different way up". it could have been handy to circulate into bankrupcy! So that's a intense component of your plan. do no longer OVERPAY! to this point as hands - you particularly are extra helpful off with a fixed. by using the years i've got been caught two times by using those issues, and expenses are low remarkable now (and going up, that's why the housing industry is going down).

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  • 10 years ago

    yes re the taxes. IT is hard to take the cost of an asset

    off on a tax return--esp when [normally] real estate

    increases in value]

    what is your actual desire? objective?

    Source(s): biz teacher/RE broker
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