Tax Benefits with Conventional

[Kwanza P.]

I'm buying my first STR via a conventional loan. Numbers were better. Lender says I won't be able to transfer the title to my LLC. Can I still get all the tax benefits ?

[Julius Vincent]

Hi Kwanza - Yes, you can still get all the major tax benefits...depreciation, write-offs for furnishings, cleaning, repairs, even travel--without having it in an LLC. The IRS looks at who's really running and benefiting from the property, not just whose name is on the title.

Most lenders won't let you move the title into an LLC because of the due-on-sale clause. Not a tax issue, it's a loan issue. Once you build more portfolio or equity, you can look into DSCR or commercial options that do allow LLCs.

Main thing you lose is liability protection, not tax breaks. Strong insurance + umbrella coverage can help fill that gap until you’re in a better position to refi or restructure.

Hope that helps — STR tax rules are tricky but totally workable with the right plan!