I'm building a carriage house on my property for rental income. (my property is zoned for 2 residences). It has been suggested that I form an LLC so I can claim the construction costs. Is this possible or recommended?
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For income tax purposes, a Single Member LLC is treated exactly the same as if there was no LLC. So a LLC would not change your income tax return. However, depending on your State, there could be additional State taxes/fees due if an LLC exists (for example, California has an $800 annual fee).
In some cases, a LLC could provide some liability protection,*IF* everything is done exactly right. If you are interested in that, you should contact a local business attorney in your area. On the other hand, good insurance can usually do the same thing, and often cover you better than an LLC could.
For income tax purposes, a Single Member LLC is treated exactly the same as if there was no LLC. So a LLC would not change your income tax return. However, depending on your State, there could be additional State taxes/fees due if an LLC exists (for example, California has an $800 annual fee).
In some cases, a LLC could provide some liability protection,*IF* everything is done exactly right. If you are interested in that, you should contact a local business attorney in your area. On the other hand, good insurance can usually do the same thing, and often cover you better than an LLC could.
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