Benefits of Using an LLC for Real Estate Investing

Benefits of Using an LLC for Real Estate

• Asset protection. With property being held in an LLC, the owner's personal assets are safe from any lawsuits that may occur.

• It is a 'pass-through' tax entity. What this means is that the profit or losses are 'passed through' to the owner and reported on their personal income tax returns. Because of this, owners of an LLC avoid capital gains tax that result in 'double taxation'

• Easy Estate Planning. The ownership of real estate held by an LLC is represented proportionately by a member's shares of an LLC (referred to as "interest"). Rather than filing a new deed, members can transfer ownership of the property to their children by simply granting them membership interest in the LLC.
  
  
  
  
  
  
  Kelvin Gray
  Mitten Homes, LLC
  http://www.BuyHouseDetroit.com