There are several ways to handle a parent’s home depending on their particular health or financial situation. At a bare minimum, your parents should have a Revocable Living Trust to ensure the orderly and effectively transfer of the home to the family and avoid probate in states where the expense is significant.
Rental property can be an excellent investment tool and it often is. However,
A good rental property strategy will not only to build an incredible long-term and sometimes immediate tax strategy, it will inevitably build wealth for future retirement and should provide current cash flow benefits if you choose wisely.
As we all know, an LLC is critical for asset protection when owning a rental, but if you are doing business in Tennessee it’s critical you understand some additional rules for filing your entity.
I recommend to ALL of our clients to purchase at least one rental property a year for tax planning and wealth building benefits.
Single-Member LLC’s have their place in the spectrum of business entity choices, and whether such an entity is right for you will depend on the details of your own personal situation.
I too wish the tax code was simpler, but it’s not. If you are getting notices from the IRS and your spouse didn’t pay his or her fair share and you’re getting stuck with the bill, this could be a solution to your mess.
I encourage all of you to ‘at least’ consider buying one rental this year (in or outside of your retirement account) and determine if it is a good fit for you.