LLC Membership And Tax Benefits
Is there anyway that a person who is one of the members of an LLC that owns rental property take advantage of any of the tax benefits associated with owning real estate or must they be on the mortgage with the bank? Why can't the person on the loan with the bank simply write up their own mortgage (w/o informing the bank) indicating an ownership interest to another person and so allow that second person to enjoy tax benefits?
The LLC deducts all related expenses such as mortgage interest and taxes and the remaining income is taxable to the LLC owners. So, since you are only taxed on the net income, you automatically get the benefits of any tax deductions.