Thank you for your responses. I am meeting with a business attorney and a cpa because I clearly have no idea what I am doing. I have been listening to some family and friends that swear by it. I will meet with professionals to see what the best options are. I dont want to pay taxes to wa-zoo or get into trouble. what I have been told that even sparked this idea , is as follows :
depreciation expense. Also what you would want to do is lease the house from the LLC that owns it. It would NOT be your home.
If they take away the personal mortgage interest deduction, then moving the home into an LLC, the LLC would still have the interest as a legitimate business expense. You would be a member of the LLC that owns the home. If the LLC lost money, that would reduce your income.
Legitimate business expenses include:
Depreciation of the building over 27.5 years
Depreciation of any equipment the LLC owns
Interest
Repairs
Maintenance
Cost of collections
Banking expenses
Office expenses
Any salaries for employees of an LLC
Utilities
Telecomm bills
