Menu

Rental properties, LLC, deductions

Home Financial Advisors Rental properties, LLC, deductions

  • Avatar Amadeus 
    Participant
    Status: Physician
    Posts: 20
    Joined: 02/21/2018

    Hello

     

    Own two rental properties (Hotel/condo). They are owned by an LLC that I created. They generate around 40K each per year and after deducting management fees and all the other fees, I have between 10K and 12K left per year for each apartment. I have two questions:

    1/ I live in California and I am planning to buy a house using a loan. Can I have an office in my house dedicated to the LLC and deduct some of the mortgage, utilities….?

    2/ I am thinking about buying a property in Mexico. Can I have an overseas property owned by my LLC?

    Thank you

     

    NS

    #106406 Reply
    Avatar westcoaster 
    Participant
    Status: Physician
    Posts: 37
    Joined: 02/17/2016

    Wow. I don’t have answers for you but I have yet to meet a doc who owns a Hotel/Condo combo. Would you be willing to share a bit how you came to pursue real estate on that level? What does that 40K per year represent as far as a %ROI?

    WCI does have  a good post on home office deduction:

    Why I Didn’t Take The Home Office Deduction

    #106456 Reply
    Avatar Complete_newbie 
    Participant
    Status: Physician, Small Business Owner
    Posts: 803
    Joined: 01/03/2017

    Uhhh…plenty of doctors have hotel investments. Ask Kamban.

    FYI, I got into a hotel investment 3 weeks ago; syndicated.

    Details…eh…hard to write about it other than a dedicate post.

    How I got involved in it (you didn’t ask me that…but I insist!): Networking.

    /my2cents

    #106460 Reply
    Avatar Amadeus 
    Participant
    Status: Physician
    Posts: 20
    Joined: 02/21/2018

    Westcoaster, nothing fancy. You just buy an apartment that is part of a resort. Tons of them in Florida.

    #106468 Reply
    Avatar CREGuy 
    Participant
    Status: Other Professional, Spouse
    Posts: 32
    Joined: 01/16/2018

    Wow. I don’t have answers for you but I have yet to meet a doc who owns a Hotel/Condo combo. Would you be willing to share a bit how you came to pursue real estate on that level? What does that 40K per year represent as far as a %ROI?

    WCI does have  a good post on home office deduction:

    https://www.whitecoatinvestor.com/why-i-didnt-take-the-home-office-deduction/

    Click to expand…

    OP bought one unit of a hotel/condo project, not an entire hotel or apartment complex.  There was a big surge of these types of projects around the peak of 2007 or so.  Essentially the developer builds a hotel, but sells off each room as a “condo”.  They are typically a bit larger/nicer than your typical hotel room, but far from a full blown apartment/condo.  The property is run as a full service hotel with all the amenities, and the rooms are put into the rental pool when the owner isn’t using them.  If you were to happen to stay in one of these properties, you probably wouldn’t even known it was anything than your typical hotel.  This model isn’t quite as popular as it once was, but you still see some projects doing this.

    As for the OP’s questions, I would consult a CPA and attorney regarding both of your questions.  The home office deduction shouldn’t be a big deal (of course it’s not a big deduction either).  As for the LLC, I’m sure you can buy the property with the LLC, the question is what effects does it have on the protections of the LLC (which is the whole point of the LLC in the first place).

    #106594 Reply
    Liked by westcoaster

Reply To: Rental properties, LLC, deductions

In case of a glitch or error, please save your text elsewhere, clear browser cache, close browser, open browser and refresh the page.

you're currently offline

Notifications Mark all as read  |  Clear