Updated about 9 years ago on . Most recent reply
Can an LLC avoid the Real Estate Professional requirement?
In a perfect world I would be able to deduct my real estate losses against my very high W2 income. However, achieving "Real Estate Professional" status is not something I will be able to do in the near future.
It has always been my understanding that an LLC setup does not have much of an impact on taxes, only on things like liability, privacy, etc. However, on a recent podcast I heard an accountant say that an LLC can pass-through losses to deduct against other income. Was this misinformation? Would establishing an LLC to hold properties be a method to get around the Real Estate Professional IRS requirement?