Anyone know anything about LLC's?
01-30-2007, 04:26 PM
#1
On Reserve
Thread Starter
Joined APC: Oct 2006
Posts: 21
Anyone know anything about LLC's?
Before I was a pilot I owned a home. I became a pilot and had to move around so the place has been rented ever since. With all the deductions I make it look like a loss on paper and was wondering if I transferred the title and mortgage to an LLC if the tax losses stay with the LLC or if I can deduct the losses against my personal income like I currently can?
02-01-2007, 02:19 PM
#2
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Joined APC: Jun 2006
Position: Retired
Posts: 36
The major advantage of an LLC or Subchapter "S" corp. is that your personal liability is limited. Say you just own a house that you rent out. The renter trips on a step in the house, falls and breaks their back. They sue you. ALL of your personal assets are in jeopardy. If a LLC or "S" corp. owns the house your assets are protected. only the assets of the LLC or corp. are in jeopardy. As an officer of the LLC or "S" corp., you are salaried and cannot charge the co. for your time, or pay yourself for working on the house. The tax losses go with the LLC or corp. because you no longer own the house, the LLC or corp. does. Also as a Landlord, if you own the house, make sure you have at least a million dollar "Umbrella" policy in your Homeowers Insurance policy to CYA, in case something like the scenairo were to happen.
02-10-2007, 06:37 PM
#4
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Joined APC: Apr 2006
Position: 737 F/O
Posts: 71
Originally Posted by Hootie9750
Thanks! That was the answer I was looking for.
