All Forum Posts by: Christopher Smith

SMLLC really offers no tax perks. 

Very Interesting, lived there once and seriously considered investing there as well to add to other OH properties I already have. Nice area.

The land is not depreciable. But if you're asking how is the value attributable to any land component of a given property acquisition determined, any reasonable method will suffice (e.g., allocating the land value based upon local property tax valuation ratios might be acceptable).

Are you willing to recognize some gain?

Yes on Sch E

No

Yes on Sch A 

Only the portion that represents actual interest

Does your insurance reimburse you for your tenant's temporary living costs? Mine does and I've availed myself of it during repair of past water casualty damages.

My PM requires all my tenants to have a clause in their renters policy (which is required to lease any of my properties) that specifically provides me landlord full liability coverage in addition to and over and above any coverage for the tenant for any dog related suits.

On a cost benefit basis I have found it's usually not worth the cost or the bother for the typical SFR.

What are the costs of performing the study, and what are the anticipated PV tax benefits? Remember the costs are permanent, the benefit is only timing and tax rates may go up. So just because it gives you a few more dollars of current depreciation, doesn't mean it makes sense. 

You need to make a risk assessment. As a buy and hold landlord, with middle and slightly upper middle class tenants in relatively new properties in above average neighborhoods and professional property management and solid property and liability insurance (w/ umbrella ins as necessary) I see absolutely no need for an LLC.

However my risk profile is different than yours, so there you go.  

How will a single member LLC lower your tax? That's a new one on me.