Tax perks of using an LLC vs owning property personally?

Finance
1

Hi everyone,

I’ve got a rental under my personal name right now, but I keep hearing that putting it under an LLC can offer some tax advantages. I get the liability protection part, but I’m more curious about the tax side of things.

Does it actually make a difference come tax time? Are there deductions or benefits I’d be missing out on by keeping the property in my own name? Or is it mostly the same unless you’re running a bigger operation?

Would really appreciate hearing from anyone who’s made the switch or looked into it seriously.

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2

Unless you’re building a larger portfolio or working with partners, I’d argue that forming an LLC is often more trouble than it’s worth.

3

Run the numbers Compare your current tax situation vs. LLC costs in your state.

4

Yes, a Land Trust, LLC is the best place for a specific piece of property, & a Real Estate Investment Trust is the best option for real estate ETFs & investment properties through Arrived & similar joint ventures. That being said, a living trust usually holds a holding company, family trust, & then REITs & Land Trusts under it for the tax benefits, but if you do not have a large estate, I would set a Land Trust, LLC up under the Holding Company, LLC.

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