Real Estate Investor · Jersey City, NJ · Member since 2013 · 15 posts · 1 vote
Hello All, I own my investment property under my name.
However, with the current version tax reform, it does look like pass through business (like S corp and LLC) with less than $500,000 income will be able to automatically deduct 23% of income. Anyone else read the current tax bill like I do. If yes, It would make a lot of sense to form LLCs and register ownership to LLC. Thoughts and ideas? I am thinking I would do the transfer before year end since the final tax bill may be effective 2018.
Investor · Berkeley, CA · Member since 2016 · 242 posts · 304 votes
8y
Hi Bharath,
I was thinking the same thing. I have some properties under an LLC and also some properties from early on that are still under my name. At first glance, it appeared to me that it would make sense to move investment property into an LLC to take advantage of the automatic deduction. I then delved in a little further and I think that sole proprietors (individuals), trusts and estates are eligible for the 20% deduction as well. Would love for a CPA to chime in on this.