I currently own several properties in my name and I do business and my taxes as a sole propieter. I also work full time and receive w2’s.
I currently use my rental income to lower my taxable income. (schedule E.)
I wanted to know if I would gain any tax benifits by transferring my properties to a LLC.
dun-deel
No, the LLC is tax neutral. Even if all your rental property is held by your LLC, you would still use Schedule E to report your rental activities to the IRS. No change in your tax return just because you put your rental property in an LLC.
Put your rental property in an LLC for the asset protection you will gain, not for tax reasons. Speak to your attorney if you don’t know what your liability exposure is as a sole proprietor.