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Uri E.'s profile image
Uri E.'s profile image
Uri E.
  • Rental Property Investor
  • from Carmel, CA
  • Member since Nov 22, 2020

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Uri E.'s profile image
Uri E.'s profile image
Uri E.
  • Rental Property Investor
  • from Carmel, CA
  • Member since Nov 22, 2020
Uri E.
  • Rental Property Investor
  • Carmel, CA
2
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36
Posts
Tax, SDIRAs & Cost Segregation

Move rental properties into a corp entity (LLC/S-Corp)?

Uri E.
  • Rental Property Investor
  • Carmel, CA
Posted

Finding confusing and conflicting opinions on the web when it comes to "should I move my rental properties into an LLC".

Have an advice?

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John Duston's profile image
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John Duston
  • Accountant
  • from Santa Barbara, CA
  • Member since Feb 17, 2016

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John Duston's profile image
John Duston's profile image
John Duston
  • Accountant
  • from Santa Barbara, CA
  • Member since Feb 17, 2016
John Duston
  • Accountant
  • Santa Barbara, CA
66
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213
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John Duston
  • Accountant
  • Santa Barbara, CA
Replied

Hi Uri,

Easy part first, NO to S-Corp. It can create basis issues down the road.

The LLC is primary for legal protection as it will not save you money on taxes. It will actually cost you an additional $800 a year as you are a CA resident. (Plus extra tax prep fees)

Whether or not you put your property into an LLC depends on your risk tolerance, the equity in it, and insurance plan.

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