Financial benefits to forming an LLC for real estate??

[Sara J.]

I'm looking for arguments to help convince an investor to form an LLC before buying an apartment building for rental income. (He won't occupy the property.) He's more concerned with immediate tax/financial benefits than liability protection. Any help appreciated. Thanks!

[Natalie Kolodij]

Originally posted by @Sara J.:

Thanks to everyone who replied. His accountant had advised him to create an LLC & mentioned a tax benefit from the 2018 tax law (Section 199A). Seems like the consenus here may indicate this is the only real advantage financially-speaking. I'll pass that on. Thanks.

The 199a deduction is 100% unrelated to having an LLC or not. It doesn't impact your qualification for that deduction or not.

Tell him to get a new tax pro- one who specializes in real estate and who actually knows tax laws.