Closing on my first home 2/3/2020 which is a MFH that I am house hacking. I was wondering how to make the rental aspect of my property a business since I couldn't technically take title in an entity because of FHA restrictions. Any advice?
You don't need an LLC to have a business.
Read some real estate tax books and link up with a CPA so you know what is taxable and a tax deductions. Don't mess around with that.
You need to hire a CPA or accountant that specializes in real estate taxation. A good accountant will save you much more than what you pay them. There are 20+ CPAs and accountants on this site. Reach out to a few and see who you like.
Good luck and let me know if you have any questions.
About LLC versus owning property in your name when renting out - are there no concerns about owning in your name in case of someone bringing a lawsuit and going after all your possessions? Thanks!
You are not required to have an entity to be able to take deductions or have a business.
You are entitled to the same deductions such as property taxes, mortgage interest, insurance, repairs, etc if you have an entity or you don't.
Congrats on the house hack! I've done it for over 2 years now and love it. My wife: not so much. We bought it with an FHA loan in my personal name as well. We live in half a duplex so we can deduct half of the building costs as rental expenses. That also means half depreciation. If any maintenance issues happen in the unit we're living in, they are not technically tax deductible. But the other unit is. If any maintenance item to a common area is required, we generally have treated the entire expense as tax deductible.