Limited Partnerships / Depreciation / Living Trust

Should the beneficial interest of a land trust (property you are getting) be your living trust or an entity? Im getting conflicting answers. If entity, which one S/C/LLC, based on hold or quick turn?

Am i also correct in understanding that you cant depreciate rental property that is titled to a LP? Why would you title in a LP anyway?

What if LP is beneficiary of the trust and have a C corp as 2% GP and me personally as the limited partner?

We have several “know-it-all, done-it-all” investors here and I am geting different stuff from everyone. All property and myself reside in VA.

P.S. Is all this hoo haa about Nevada entities worth it? Your name is on the operating agreement as a manager or member or officer and has to be available on request to the public, at the registered office of the state filed in anyway?! Also, you (us in VA) still have to pay state income tax to our state, regardless of the state the $$ was realized…so unless all our biz is done in NV, whats the savings there? What am I missing? PLEASE clarify…There are several very sharp people on here…chime in anytime

Disclaimer: I’m not a trust expert, I only know the basics.

I would probably avoid holding investment property in a living trust. I don’t know about the “living” part, but in a traditional trust you have to dissolve the trust to remove a property. An entity is simpler, can be sold outright if necessary and provides protection for your personal assets. In my opinion.

Without question the best entity to hold property is the LLC. It is a stronger form than a corporation of any flavor. Plus, it has the advantage of being able to be taxed as a partnership, S-corp or C-corp to tailor your taxes to your needs.

Partnerships take depreciation. It being rental property makes no diff.

People talk about NV entities to save taxes and provide privacy. Most states are like VA and will tax the entity if it owns property or has nexus ( has an office/operates from) in the state, thus negating any possible tax “savings”. And these days when banks, credit cards, county clerks, everyone shares information, true privacy is difficult to attain. So, IMO, NV entities are nothing more than a way for companies that sell them to part you from your money.

Thank you so much! You’re a gentleman and a scholar!