We have vacation property we purchased in 2021. Formed LLC after to manage AirBnB aspects of property. Really have 2 questions
(1) Is the LLC providing any personal asset protection for any potential claims from renters, ie slip and falls etc?
(2) how do we prepare taxes
The thing confusing this is the property/house is "owned" personally, not by the LLC. As such, I'm not sure the LLC is affording any personal asset protection, and also, not sure how to handle the tax preparation.
Facts:
- House owned personally, not LLC; purchased before LLC formed.
- LLC manages property.
- Business/LLC has separate bank account that manages all income/expenses for property
- Business/LLC is listed as account holder for AirBnb, 1099-K issues to the business/llc
(3) As income is to business (1099-k issued from airbnb to business), would like to deduct all expenses. As home is not owned by business, does that mean interest/taxes/insurance cannot be deducted from business income? I assume all other costs can be (utilities, maintenance, cleaning, repairs).
I understand this is more straight forward in we transferred house deed to business, but we have great interest rate, and don't want to refinance to today's rates, which would be required if we were to transfer deed to the LLC.
