I am buying a house as my primary residence. It has a MIL suite which would work well as a rental unit (it has separate access, covered parking, screened
-in porch, etc.). I’ve checked with the code office and there are no restrictions preventing me from renting it out.
We have a few other rentals in an LLC so costs and liabilities for those units are easy to account for.
The MIL suite will take a couple thousand dollars to get fixed up enough to rent. What is the most tax & liability advantageous way to handle the rental and costs associated with fixing it up?
For instance, can I sign a management agreement with the LLC and reimburse the LLC for costs ? Do I need a personal policy to cover liability associated with the rental? I would prefer to direct
liabilities and expenses through the LLC but I’m not sure there is a way to do that.