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Angie, Other/Just Looking in Novi, MI

what is the benefit of turning a rental int an LLC?

Asked by Angie, Novi, MI Sun Jul 27, 2008

my husband and I live in MI and bought a larger home and could not sell the original home due to the market right now. We have been renting it for the last year and I saw huge return in my taxes because of the rental. we heard that we should turn the rental into and LLC but we are not sure. Also, are there any CPA's out there who could give advise on a really great CPA in Novi MI or surrounding areas.

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7
Paul is right. Its simple and provides a layer of insulation from risk.
0 votes Thank Flag Link Mon Mar 2, 2015
The LLC will protect you from liability. Limited Liability Company is a U.S. business structure that is a cross between a partnership and a corporation. Like a corporation, the individual owners of an LLC are protected from personal liability. I am not an attorney, so please check with your lawyer to see how best to hold title in your income producing property.
0 votes Thank Flag Link Mon Feb 23, 2015
Southwest Michigan Real Estate since 1987
http://www.thedailylistings.com
Flag Mon Feb 23, 2015
Dear Angie,
The market has rebounded. Your home may be worth way more than you think today. Mortgage rates are at historic lows. There is a shortage of inventory and lots of buyers. If you currently have a home to sell or just want a market evaluation Im happy to help.
CorinneMadias.com to search or 248-380-8800 to speak. I have offices in Novi and Northville.
0 votes Thank Flag Link Mon Feb 23, 2015
I agree with Derek, contact a real estate attorney or CPA. There are pitfalls and costs associated with every type business arrangement. You may be able to get a discount by joining a local Real Estate Investors Association. There are several in the Metro Detroit area.
0 votes Thank Flag Link Sun Jul 27, 2008
hi neighbor- i live in walled lake..the main benefit of deeding the other home to an llc is to protect you and your husband's assets in case of a lawsuit.......keep in mind that a qcd or warranty deed constitutes a transfer of ownership and violates the "due-on-sale-clause" in the mortgage if there is a mortgage on it.....if you do a qcd , it doesn't have to be recored to leagl and valid...but it typically is recored.any title co can help you do the transfer and give you the list of things you need to properly transfer..use a title co. so it is done properly..hope that helps..bob mcclure- mortgage now- farmington, michigan......(248) 974-4444
0 votes Thank Flag Link Sun Jul 27, 2008
GREAT QUESTION: I would recommend search CPA who specializes in real estate investment properties. One concern house mortgage is under your individual names .... I own investment properties many long term advantages.
http://www.lynn911.com http://www.homes-for-sale-dallas.com
Web Reference: http://www.lynn911.com
0 votes Thank Flag Link Sun Jul 27, 2008
As Real Estate professionals, we are not able to give legal or financial advise and we must direct you to professionals in those areas for exactly that.

This is truly a case-by-case question, and must be discussed with your CPA, and/or your attorney. People do this for one or two of two reasons - liability and/or tax benefits. We can speak offline and I would be happy to refer you to someone.

My best...

Derek Bauer, Associate Broker / Realtor
Real Estate One
248.851.4100 x132
derek@doortodreams.com
http://www.DoorToDreams.com
Web Reference: http://www.DoorToDreams.com
0 votes Thank Flag Link Sun Jul 27, 2008
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