<sftong2000[at]hotmail.com> wrote:

- quote -

Your biggest issue may likely be with the lender. They may
not want to allow you to transfer to an LLC after they lent
you the $$$$$$$$.

- quote -

An LLC is usually an ignored entity for tax purposes.

- quote -

I think you are referring to the hobby loss rules. Having
an LLC or not won't affect the hobby loss rules.

--

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

I currently own a home, and I am interested to buy a 2nd
property (Condo) for rental investment. I appreciate if you
can help me with the following:

1) What is the complication if I were to buy the property
under my name before setting up LLC and transfer the
property over? Or will it be simple if I were to set up LLC
first before buying? I am not familiar with how the lender
would treat my application under different entity -- me VS
llc.

2) If I did not set up LLC but instead buy the property
directly under my name, would I get a tax deduction on the
property expense? like the interest, property tax, etc?

3) I heard that LLC must show a profit 2 years out of 5
years. So if I were have the investment property under the
LLC, and I did the deduction of depreciation over 27.5
years, I think I would be constantly showing negative cash
flow. So, how would I make the property turn profit 2 years
out of 5 ?

Thanks in advance for your time and effort!
shawn

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >