When you say both can deduct rent. If the rent is set up in Connecticut and the person living Connecticut pays $1000/month, if the person in Louisiana pays $700/month, does the person from Louisiana deduct only the $700 for himself and the person in Connecticut deduct the $1000 for themselves, or does each person deduct their respective amount of rent, or does each person deduct $700 (so $1400 total) if the LLC is set up in Louisiana?
Furthermore, will the credit amount to the difference in taxes ie if person A was suppose to pay $1500 (based on Louisiana income tax) in taxes and person B was suppose to pay $2000 (based on Connecticut income tax) in taxes but the LLC is setup in Louisiana, would person B pay $3500 total, but then be reimbursed by the state of Connecticut for $1500
