Updated over 8 years ago on . Most recent reply
Transfer Home with Person Mortgage to Multi-Member LLC
Hello, I would like to purchase rental property with a business partner and ultimately house it in a multi-member 50/50 LLC. We realize we won't be able to finance the house through the LLC directly, but it seems pretty common to take out a conventional mortgage in one/both of our names, and then quitclaim/warranty the deed over to the LLC.
Assuming there are no issues with the DOS clause here, we would continue to pay the mortgage out of our personal funds, right? We're not entirely sure how this would affect our taxes; we'd ideally want to deduct the mortgage interest as a business expense within the LLC. Is that possible? And are we missing any complexities that would screw up this plan?