Last year I procured a condo in another state as a real estate investment. I rented the condo out for a few months and had some income. The condo is placed in a typical asset protection structure; title is held in an LLC. The condo has ongoing monthly expenses like HOA and a land lease. I hired a property manager to look after the property hence have monthly Property management fees as well. I also made some improvements / upgrades. However, instead of paying for the work individually or separately, I pay the property manager from the LLC. For example: if the flooring material costs $3,000 and the labor is $2,000. I just pay the property manager $5,000 from the LLC and he takes care of the project..ie: separately purchasing the materials from the store and then paying for the contractor for labor. The rent is also collected by the property management company and sent to the LLC via 1099-MISC at the end of the year. Do I deduct the expenses on the Rental property section of Turbo Tax? or as business expenses from the LLC? This is not a commercial property, when I try to enter the details of the condo under the LLC as a Rental property, the depreciation is 39.5 years not 27.5 years. Is this due to the fact the LLC owns the condo? and is now categorized as a business asset?
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I am a CA resident, but procured a condo in Florida as a real estate investment last year. I rented the condo out and I currently have a positive cash flow. The condo is placed in a typical asset protection structure; title held in a Florida LLC. Will I be forced to register the LLC in California when I file my Taxes?
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