If she lives in the home as her primary residence while also being on title, the IRS could disallow rental losses due to personal use.A valid lease at market rate and her removal from title would strengthen her position to claim active participation and depreciation on the rental portion.Title Structuring and LLC Transfer:Removing your daughter (and spouse) from title and transferring to a single-member LLC (SMLLC) in your husband's name aligns with IRS guidance and simplifies the REP claim.Transferring to an LLC may trigger a transfer tax depending on your state/county, but could be worthwhile for legal protection and tax clarity.If structured properly, there's no federal income tax when transferring to a disregarded SMLLC (for a single owner).Future Gifting & Tax Planning:Gifting the home later to your daughter will not get a step-up in basis.

@Matt Boerlage As a single member/disregarded entity, maintaining corporate formalities is important even though piercing the corporate veil is rare.

This is the only one where I’ve seen such neglect, poor communication, and complete disregard for investors.Harvest Returns took fees while we took 100% of the risk—and then claimed no responsibility when things fell apart.Do NOT invest in this company and its offerings unless you are fine with losing all your investment capital.

If you completed your 1031 and put the property in a single-member disregarded LLC, meaning that the LLC has one member and does not file its own tax return.

If entities are disregarded, you can keep up with more than 1 in a single QBO account using the location/business feature to keep track of them separately.

I’ve found the same: when guests flagrantly disregard occupancy limits, it’s a major red flag.

If entities are disregarded, you can keep up with more than 1 in a single QBO account using the location/business feature to keep track of them separately.

If entities are disregarded, you can keep up with more than 1 in a single QBO account using the location/business feature to keep track of them separately.

From a tax standpoint, rental income and deductions (depreciation, repairs, etc.) still pass through to your personal tax return if the LLC is treated as a disregarded entity or partnership.Insurance Adjustments: Once the entire home becomes a rental, you'll need a landlord insurance policy, which usually costs more than homeowner’s insurance.

LLCs are very flexible in that they can be taxed as single member/disregarded, partnership, C-Corporation, or S-Corporation.