Creating an LLC to take advantage of 20% on pass-through income

[Alok S.]

Hi,

My wife and I have a rental property in our name. I am creating an LLC, both of us as members, to take advantage of the 20% deduction on pass-through income (rental income) introduced in the new tax bill effective Jan 1, 2018. The mortgage, title and insurance are in our name. Are we required to transfer the mortgage/title/insurance to LLC? Or it is fine to collect the rent in our name and deposit into the LLC's business account and pay for any expenses from the same account?

Thank you

[Eric James]

There are threads on the new tax law. You dont need an LLC for the 20% pass through deduction. Those threads are a good read.