Hey All,


From my understanding with an investment home an individual can only write off losses to a certain amount depending on their income. Does this change if they purchase a home using an LLC?

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Beach Buy who is a Skins Fan
Outer Banks - Outer Banks Property Management - Outer Banks Real Estate - Coming Soon New REW Template and IDX

Good question and now I'm also waiting for a great answer.

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Daniel Gaitan, REALTOR®
Trend Setter Realty
San Antonio, Texas
(210) 846-5282
San Antonio Real Estate | San Antonio MLS | San Antonio Builders

"Does this change if they purchase a home using an LLC?"

Yes. I should probably end it here, but...

Personal loss is taken under capital gains/losses and you can only lose as much as you gain, carried over year-to-year.

LLC is under business gain/loss and subject to different rules.

But then again, that is why I have an accountant who tells me what to do. I have thrown in the towel trying to understand our tax code.

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R,
David Phillips
A Marietta Real Estate Agent, 678-521-4680
The Georgia Mortgage Broker, 678-370-0190

Buyhawk,


I thought that was the answer I was going to receive. I will have the person speak with a tax professional. The tax code is just too confusing. I appreciate the input.

With investment homes your personal income works against offsetting losses from what I understand. The more income you make the less you are allowed as a write-off with a loss. I believe the initial threshold is 100k. At that you can write off 50K. For each dollar extra you make in personal income works to take $2 off the 50K amount.

I may be reading wrong, but that seems how it reads to me.

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Beach Buy who is a Skins Fan
Outer Banks - Outer Banks Property Management - Outer Banks Real Estate - Coming Soon New REW Template and IDX

Great question, I thought that was a great little bit of info.

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Bellingham Homes For Sale
Bellingham MLS
Bellingham Houses For Sale