Can operate LLC for a Airbnb business without the LLC owning deed

[Roman Rida]

Hi Bigger Pockets!

I have a Airbnb property with a residential "investment property" loan with Pennymac. I understand that Pennymac doesnt allow you to switch the deed to the LLC and I am wondering if I can operate my Airbnb business under the LLC, just as I would if the deed was under the LLC, but without the liability protection? I own this property with a partner who holds the mortgage note with me 50/50. I am asking because I want to set my wife up with Real Estate Professional Status and I am unclear on wether or not the LLC not owning the deed to the property impacts any of this or if it has any implications on recognizing the revenue generated during tax season.

Thank you for your help!

[Will Barnard]

Originally posted by @Scott K.:

Originally posted by @Wayne Brooks:

There is no benefit to “operating it as an llc” for either taxes or the TE professional status. 

 My accountant would say otherwise. Specifically an llc incorporated as an s Corp. Also the real estate professional status should help write off losses on income. Why do you say this? 

He said it because it is true. But as you stated, an LLC WITH S Corp tax election (which is not what was previously asked) provides you essentially an S Corp which allows you to have some minor tax savings in self employment taxes. One should always consult with their CPA regarding tax questions and not the membership at large here.