LLC to offset W2
Hi i earn 400k per year married filing jointly, i have a primary home which i am renting out. i live in california. My cpa recently told me something about creating a mutliperson llc , so that i can offset my w2 income. My home price is 1 million with around 850k loan at 4.125% interest rate with 12k yearly property tax. Can you suggest what he was talking about
Quick Answer:
It sounds like your advisor is discussing a strategy that hinges on qualifying as a **Real Estate Professional (REP)** for tax purposes.
Here's a breakdown:
1. **Real Estate Professional
Note: This answer is provided for convenience only. It is important that you speak to a CPA about your individual tax situation.
