Updated over 4 years ago on . Most recent reply
timing to form an LLC
I'm about to buy an STR (Airbnb) just outside San Diego. I believe it is a good idea to set up an LLC for that property (as there are many people going through, slip&falls may happen more often).
If I plan to close this December, what is good timing to be setting up an LLC?
What is a good way to do it? I assume it should be a California LLC?
Dennis
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Just an old trick from my experience...if you purchase the LLC, you may be able to use the tax basis of the original purchase for your property tax. I've done that in Cali in the past......do some research....
Example - The house was purchased for $200k and put into an LLC. They want $400k for the house. Buy the LLC for $400k and you assume the tax base of $200k for your property tax. At least that's how I did it not too long ago (in 2014)