I would like to know how the banks work, i went to a couple of my banks and asked them if i can put my propeties in a LLC they came back to me and said no, what could the banks do if i went a changed title but left the loans in my personal name, i have never been late on a payment. Also if i set a an LLC would this save me on taxes, i am currently getting killed on Amt taxes is this cause by owning properties and if i put them in an LLC would i stay on taxes.
AMT calculations do not look at your rental income directly. Instead, the calculations look at certain expense items. For rental property, the only AMT item I am aware of that might affect AMT is the depreciation on your rental property. For AMT purposes, depreciation is calculated over a 39 year recovery period instead of the standard 27.5 years.
If this higher net AMT rental income puts you over the income threshhold where AMT comes into play, then it will still happen even if your property is held by your LLC.
By the way, for most rental property investors, the AMT will most likely be triggered by a large capital gain on the sale of an investment property.
how would they look at the captail gains, if i sell it to a llc is it fully taxed , some of these proporties i own for 8 years cost is small, and is a llc only really set up for asset protection or does it really save you on taxes
I also have another question , i see that Dave said to depreciate my proporties over 39 years instead of 27.5, if i have been depreciating all of my proporties for the last 5 years at 27.5 how can i change it at this point and if so how do i go about this.
I think you can take your personal property into LLC as your initila investment. Just like you take machine or truck into a company. You may want to talk to a CPA, I am in the same boat as you but I have read somewhere that it does not have to be a cash that you take as capital to LLC it can be a property or machine or a car.