Can STR purchased under LLC ownership offset active W2 income of the members of the said LLC?
I plan to do cost seg study and get bonus depreciation (and will actively participate as per IRS rules) but need to confirm if this would still work if buy STR under LLC and I can still be eligible for that STR loophole?
It depends on the profit/loss allocation on the operating agreement. Some of the members/partners may not be eligible to use the STR strategy if the other members are material participants.
Also, I assume when you said "members of LLC", you're referring to a partnership and not a single member LLC.
It depends on the profit/loss allocation on the operating agreement. Some of the members/partners may not be eligible to use the STR strategy if the other members are material participants.
Also, I assume when you said "members of LLC", you're referring to a partnership and not a single member LLC.
Thank you for the response. Yes, it will be a partnership with myself/spouse as members and we file MFJ.