Because an LLC is a 'disregarded entity' changing the ownership of the property over to an LLC that you and your spouse fully own will not really have an effect on your taxes. The rental could still be reported on schedule E and all of the expenses would still be there. The basis would not change at all for depreciation purposes even if the county raises the value.
So this is really just a legal question for you. And if the legal protection provided by the change in ownership on paper is worth the hassle to you then this is a good deal and you should proceed!
@Will954
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