Too late for writing of expenses? - Posted by Sean

Posted by JHyre in Ohio on March 03, 2002 at 06:18:51:

From a tax standpoint, selling property from an LLC will not make any difference…you’ll get the same deductions whether you sell from LLC or sell on your own and then spend the money on new businesses.

John Hyre

Too late for writing of expenses? - Posted by Sean

Posted by Sean on March 02, 2002 at 01:34:05:

I bought a condominium last year under my name with a mortgage. Now as tax season approaches I think I should have already out it into an LLC so I could write off of the interest (net loss of $100/month). The interest doesn’t add up to enough to qualify for itemizing for 2001 but I do have to report the rental income.

Should I create an LLC now and transfer the deed?

Thanks in advance for any help.

Sean
Seattle, WA

Re: Too late for writing of expenses? - Posted by JHyre in Ohio

Posted by JHyre in Ohio on March 02, 2002 at 05:46:24:

The interest should be expensed on Schedule C or Schedule E, depending upon the nature of your business (selling the condo, or holding to rent, respectively). Forming an LLC will not affect the interest deduction, nor does itemizing (or lack thereof) matter.

John Hyre

Re: Too late for writing of expenses? - Posted by Sean

Posted by Sean on March 02, 2002 at 10:06:10:

Thanks John. I was concerend becasue the property is in my name but I just read schedule E…thank you!

I have another question: If I sell the property and use the money to start business’ instead of doing a tax-free exchange, should I put the property into an LLC first? Seems like I could take advantage of “good” expenses that way.

Sean