|
Is there a way to write off operating expenses for investment property?
My relatives own investment property in California and want to write off the operating expenses. Their personal income is more than $150,000 a year, so they have been told that they are very limited in writing off expenses for the property. Would it be better for them to start an LLC or corporation to manage the property so they can have an avenue to write off more expenses? Can they write off these expenses if the LLC or corporation doesn't own the property?
|
|
|
If they havent already, your relatives should speak to an accountant who is familiar with accounting procedures for investment properties. Not all accountants are comfortable with this area.
The reasons their write-offs are (supposedly) limited may have little to do with their income and more with the way in which they are writing off the property. Creating an LLC or corporation to own (not just to manage) the property is usually a better idea as another shield of protection against personal liability.
|
More Questions from Finance & Accounting
|
|
