Best approach for taxes??
My business partner and I started investing this year. We currently have three properties with eight total units. We hold the title to each property jointly, but we do not have any legal entities.
What is the best way for us to go about filing taxes at year end? Should we create an LLC or LLP now? Can we show all of our income and expenses related to our properties in a legal entity even if that legal entity doesn't hold our properties?
I have kept clean records on everything separately for each property, as well as a running expense tracker of expenses that don't pertain specifically to a property that we own (i.e. inspection cost for a property we didn't end up buying, cost of real estate books purchased, etc.).
How should we tackle this situation? Thanks!