We have purchased a vacation home, with the intent of putting it into an LLC and renting it part-time through VRBO. However, the mortgage lender will not allow us to put it into an LLC. Can we lease the house to our LLC for perhaps $100 per year, then any rental income goes into the LLC and thus the rental income (what is not spent on house upkeep) is only taxed as we remove it from the LLC?
1 Answer from Attorneys
Without reading your mortgage, no one can answer properly.