What type of business entity? A single-member LLC presents no income tax issues. Can't say the same for an S-corporation. In a SMLLC the mortgage debt is included in your tax basis. Not so for an S-Corp, only investment and direct loans from the shareholder count towards their tax basis so if a property produces losses there can be limitations on what you can deduct. Also, be aware that unless you are a real estate professional losses on rental real estate is subject to the passive activity loss rules.
