My wife and I are looking at a short term rental property. That is the definition of a partership no matter if you list it as an LLC with the state.
What are the tax advantages of forming an LLC together vs. filing a partnership? An LLC is a state designation ONLY and can be taxed as either a Partnership or S-Corp by the feds (a choice you must make) ... for a short term rental like AirBNB either will work the same way. ALSO the property must be titled in the LLC name if you are going that way.
Do we need to form something like this for one AirBnb property in order to get a business bank account and credit card etc. Or would we would be best suited for tax purposes to for an LLC we hire and pay to manage the property? You need to get an EIN to get a business checking account and register with the state ... again which business type you choose depends on your state regulations. Seek local professional assistance to get things set up the proper way to begin with.
For taxes, if we purchase the home this December in just our names and put in some money to renovate and furnish, but do not rent until 2023, are these expenses able to be written off on taxes? The purchase price + cost to buy + improvements = cost basis for depreciation which starts when you place the asset into service. You cannot "expense" them they must be capitalized and depreciated.
