Hello Bigger Pockets family,
My brother and I have acquired a single family house following my fathers passing. We intend to do a turn and rent the house. We both are covering the mortgage. The question is how do we both benefit from the our personal expenses as well as for the updates and refinancing?
My brother is married while I am single. Should we form an LLC and what are the pro's and cons? Or, should we co-own, or should one of us own and workout tax options to benefit us both. I currently have a buy and hold townhouse that is renting under my name and not a business.
FIRST<< get it rented,, you can't take any expenses prior to having it rented out..
So get a nephew or someone to live in it while your working on it so it is considered put in to rental status ASAP.. doesn't matter what he pays just that it's being rented .
Are both of your names on the title of the property,, it's not that your both paying the mortgage, it's how it's done at tax time so whom ever is title holder can take the expenses and reports income.. ASK a CPA what's best and how to set up..
Just don't put alot of money in it first ,,, get it rented out first... and then repair, and save receipts and then have nephew move out and rerent to new tenant.. then all your costs for repair and labor can be a tax deduction as business expense of the rental property.
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