moving from personal condo into rental property
I'm considering making my first purchase of rental property and have a couple of questions:
1) I will move from my current residence into one apartment of the rental property. I would like to put both properties into an LLC. If I do this, will I be able to write off depraciation and other costs of BOTH properties as investment properties?
2) A bit unrelated, but does anyone have an opinion on using a service like corporate.com for forming an LLC, versus paying a local attorney?
Thanks a lot.
Ted
1) will I be able to write off depraciation and other costs of BOTH properties as investment properties?
Only if you rent the one you occupy from the LLC at market rents. This will generally be a wash or worse (and its been awhile so check with a CPA type) LLCs are pass though entities so it will all be attributable to you. The character of the write off is what you need to explore to see which one works best in your situation. You might do better as Owner occupant with the direct interest deduction if you are financing it. Now if the LLC has more than one member then things work better.
2) does anyone have an opinion on using a service like corporate.com for forming an LLC,?
Never used them but I've used Laughlin International for years for basic stuff. I'm sure there are others. You need to really inderstand what an LLC does and how it will work for your circumstances then you can work with almost any document service.
I would guess that the services are cheaper than a local guy as they work on repetative volume. This stuff is cookie cutter, which is why you need to educate yourself.
[ Edited by rse2 on Date 03/02/2003 ][ Edited by rse2 on Date 03/02/2003 ]