@Micaila FrazierSince all three of your businesses are LLCs owned by you and your spouse, the IRS treats them as pass-through entities by default.

If you ever want to walk through how this could apply to your own numbers, happy to hop on a quick call and share what I’ve seen work for other investors.

More importantly, depreciation isn’t free — it’s effectively a loan, because the IRS requires recapture when the property is sold, leading to significant tax liabilities that offset earlier savings.

IRS FAQ on Bonus : "(a) the property was not used by the taxpayer or a predecessor at any time prior to such acquisition; (b) the property was not acquired from a related party or component member of a controlled group; (c) the taxpayer’s basis in the property is not determined in whole or in part by the seller’s or transferor’s adjusted basis in the property; (d) the taxpayer’s basis in the property is not determined under section 1014(a) or 1022, relating to property acquired from a decedent; and (e) the cost of the property does not include the basis of property determined by the reference to the basis of other property held at any time by the taxpayer"

Any chance you would be willing to hop on a quick call with me to chat through it.

From what I’ve seen with investors I work with in the Midwest, the IRS typically looks for the property to be “placed in service” before year-end.

Mixing them can create reporting headaches and risk IRS reclassification.This structure gives you flexibility, protection, and the ability to scale intelligently.This post does not create a CPA-Client relationship.

For more info on the tax incentives, read about Act 20 and Act 22.Additionally, the IRS recently designated almost the entire territory of Puerto Rico as an Opportunity Zone.

We want to stay compliant with any IRS issues and work within the newly created multi-member LLC.

By default, a single-member or husband-and-wife LLC is a “disregarded entity” for tax purposes — meaning the IRS still treats it the same as if you owned the property in your own name.