LLC, Tax Questions etc.

[wintermute]

I am buying my first property to rent, and have some questions.
I see a lot of talk about LLC’s. What is the reason, and when should I set up an LLC?
I live in California, but own the property in Nevada. Where would I need to setup the LLC?
What all expenses can I deduct that are not directly tied to the rental? computer, car, travel, etc?

I have a separate checking account for my rental expenses, but it is ‘linked’ to my account to avoid fees. Since I am just starting out I transferred over some seed money, but expect the house to pay for itself.

[BLL11]

@wintermute post:1

What is the reason, and when should I set up an LLC?

Set it up when you have real wealth and don’t actively manage your business.

@wintermute post:1

I live in California, but own the property in Nevada. Where would I need to setup the LLC?

Both states require you to register in their state.

@wintermute post:1

What all expenses can I deduct that are not directly tied to the rental? computer, car, travel, etc?

All business expenses are deductible subject to IRS limits.

@wintermute post:1

I have a separate checking account for my rental expenses, but it is ‘linked’ to my account to avoid fees. Since I am just starting out I transferred over some seed money, but expect the house to pay for itself.

This set up provides evidence there is no difference between you and the business.