Question about rents being deposited in LLC

[Dave DeMarco]

@Russell Brazil @James Wise @Andrew Postell @Michael Swan

I have 5 rentals, 3 in Tennessee and 2 in Ohio. I have an LLC set up in North Carolina where I live. I paid cash for the properties and then took out equity lines to fund other deals in my name and not the LLC name. All properties are professionally managed. I would prefer to keep the properties in my name for now.

My question is this, can I have the rents that the management companies collect paid directly to the LLC even if the properties are in my name? Do I still get all the tax benefits even though the properties are in my name, not the business name and in different states?

Thanks in advance

[Ashish Acharya]

Originally posted by @Dave DeMarco:

@Russell Brazil @James Wise @Andrew Postell @Michael Swan

I have 5 rentals, 3 in Tennessee and 2 in Ohio. I have an LLC set up in North Carolina where I live. I paid cash for the properties and then took out equity lines to fund other deals in my name and not the LLC name. All properties are professionally managed. I would prefer to keep the properties in my name for now.

My question is this, can I have the rents that the management companies collect paid directly to the LLC even if the properties are in my name? Do I still get all the tax benefits even though the properties are in my name, not the business name and in different states?

Thanks in advance

This has been talked about a lot in here. If you have an LLC, then it is for an asset protection not for any tax advantages. LLC does not give you any tax advantages. In other words you get the same tax deduction when the houses are in your name too.

You need to talk to your attorney about the LLC. By not having the property is transferred to your LLC, you are defeating the purpose of an LLC. Whatever you were doing is however going to help you in your bookkeeping as everything is flowing through one place.