Tax questions and LLC questions

[John Pruner]

Hi,

If I buy a small buy-and-hold SF property, what is the reason to do it through an LLC? I guess I can deduct depreciation and write off mortgage interest whether or not I use an LLC. However maybe I can only deduct something like gas to visit the property if I have an LLC? Is that why you'd use an LLC? And also if there is some liability the LLC would shield me?

My next question is whether there is a reason to form the LLC in a no-personal-income-tax state like Wyoming? I live in Colorado. Let's say I purchase a property in George or Michigan or Indiana and my LLC is in Wyoming. Is there any advantage to me?

Will I have to file a personal income tax return in each state where I own a property? In other words if I own a property in Utah, and another in Michigan do I have to file tax returns in those states to report my rental income there?

Thanks! :)

[Christian Carson]

Generally you'll get a credit for the payment of out-of-state income taxes. This can hurt you if the state where the income originates has a lower tax than your home state.