I'm looking to purchase an RV that my family will use some of the time but MOST of the time we will have it listed on AirBNB. As far as Assets I'm wondering which is better overall for liability, income tax purposes, and write-offs:
a) own the RV personally and rent it out to a separate LLC that I create, which then the LLC uses the RV to host AirBNB stays
b) purchase the RV as an LLC asset and rent it out via AirBNB from there
I'm looking to purchase an RV that my family will use some of the time but MOST of the time we will have it listed on AirBNB. As far as Assets I'm wondering which is better overall for liability, income tax purposes, and write-offs:
a) own the RV personally and rent it out to a separate LLC that I create, which then the LLC uses the RV to host AirBNB stays
b) purchase the RV as an LLC asset and rent it out via AirBNB from there
If you're planning to rent it out most of the time, I'd lean toward having the RV owned by the LLC from the start. Keeps the liability separate, and it makes things cleaner for taxes and write-offs. If you use it personally now and then, just track it carefully and account for the personal use. Option A feels a little overcomplicated unless you've got a specific reason for that setup. Probably worth checking with a CPA either way, but I'd keep it simple and just run it through the LLC.
CPA| New Clients Welcome| 50 States · Member since 2016 · 430 posts · 93 votes
1y
Hi Hayley. Based on your scenario, generally speaking, forming an LLC with two members and directly own the RV tends to offer better liability protection. It also provides clear advantages for managing taxes and write-offs compared to personally owning the RV and renting it to your LLC. However, we always recommend discussing your specific situation with a tax advisor to ensure the most suitable approach for your needs. You've come to the right place to reach one.