Claiming Depreciation in LLC vs. Personally Owned
My most recent tax filing made me more aware than ever of the potential benefits of claiming depreciation. I've since sold that single family rental and have a contract on another in my area, near Denham Springs, Louisiana.
Before I have an attorney draft the LLC, I'd like to know if there are any added difficulties in claiming depreciation if the property is owned by an LLC rather than personally held. I've started reading Landlording On Autopilot by Mike Butler and he discussed earned income (LLC) vs. passive income and the tax implications of both. My hazard policy includes substantial liability coverage, so I'm wondering if I'll be causing myself more trouble than it's worth by transferring ownership to an LLC. Logic suggests that transferring ownership to another entity would prevent me from realizing any personal tax benefits. Any tax-filing advice from those more experienced than me would be much appreciated.
There are countless threads here of LLC vs. umbrella policy so I'm not really looking to debate that.
Can I claim the depreciation of a property held in an LLC? Also, I'm just looking for advice; any formal consulting will come from my tax/legal professional.
Best, -Robert