Using LLC when filing Married Separately
Hi everyone,
I own two rentals in my personal name. My wife and I file married separately due to her student loans. Her loans are repaid based off her income and her loans are forgiven in 10 years due to the non-profit loan forgiveness program (We are in year 7 so I have to deal with this for 3 more years). If we combine my income with her income then she would not qualify for this program and her loans would not be forgiven.
My problem is my real estate deductions/losses do not come off my personal income because I file married separately. So I'm not getting the tax benefits of my investments.
The thought came to me today . . . if I form an LLC, will I be able to deduct my losses on my rentals if I file married separately?
I know its a specific circumstance but does anyone has experience or advice with this situation. Thanks!
Jason