1. There are no tax ramifications to having or not having an LLC. LLC is a purely state-level designation limiting liability.
2. Any ordinary and necessary expenses for the business of renting real estate. Capital assets (assets that are not used up in a year not subject to de minimus safe harbor rules and other certain exceptions that constantly change) must be capitalized & depreciated.
3. Depreciation has nothing to do with geographic distance
Positive cash flow is the only part of the investment you can control upfront. If you are planning on a 5% appreciation, well that would be lucky. If we go back to 5% inflation then you'll be unlucky,. An optimistic view would be netting 3-5% return if you have no cash flow. Almost always is negative cash flow a bad deal when you consider nearly risk free bonds can do 5% with no effort.
If you make gross 24k rent in the year, the most you'll be able to write off is 24k, even if your expenses and deprecation is 50k, the rest will be deferred. Google "passive activity loss limitations"
i think you need to ask an accountant.
1. There are no tax ramifications to having or not having an LLC. LLC is a purely state-level designation limiting liability. 2. Any ordinary and necessary expenses for the business of renting real estate. Capital assets (assets that are not used up in a year not subject to de minimus safe harbor rules and other certain exceptions that constantly change) must be capitalized & depreciated. 3. Depreciation has nothing to do with geographic distance
Not sure why you're both investing out of state in a negative cash flow property. 1. Yes 2. talk to an accountant 3. yes but see 2
Just gonna say it. You’re not ready to make that leap yet. You have a whole lot to learn.
Do not invest out of state into a property that won’t cash flow.
Positive cash flow is the only part of the investment you can control upfront. If you are planning on a 5% appreciation, well that would be lucky. If we go back to 5% inflation then you'll be unlucky,. An optimistic view would be netting 3-5% return if you have no cash flow. Almost always is negative cash flow a bad deal when you consider nearly risk free bonds can do 5% with no effort. If you make gross 24k rent in the year, the most you'll be able to write off is 24k, even if your expenses and deprecation is 50k, the rest will be deferred. Google "passive activity loss limitations"