Group Vacation Home

[chadw]

Group of 5 people want to pool money and purchase a cabin as a vacation property. They are each going to put cash down towards a down payment and then set a fixed $ amount that will go towards mortgage and expenses. Everything will be equal.

They are thinking initially to set up as an LLC. They are looking only to very occasionally rent it out. Maybe a few weekends a year at the most. Rental income is not their concern at this time or the primary purpose of this purchase.

What is the best way to set up this endeavor for tax purposes?

I guess what I am asking is if the 5 form a LLC and purchase the home through that LLC, can the interest and taxes still flow through to the members Schedule A or are those deductions lost.

Any suggestions?

[indyscott]

bump

[Booger]

What does "BUMP" mean?

Curious Booger

[PapaJoe]

It means there is a rough patch of road ahead.

[jainen]

>>What does "BUMP" mean?<<

It's part of the secret code of computer messages, intended to screen out participants based on how cool they are rather than knowledge of the subject. "Bring Up My Post" implies that the question has already been completely answered and there is nothing new to be learned. Kind of arrogant, but everyone's entitled to their own opinion.

[Booger]

Thank you, jainen.

Enlightened Booger

[jainen]

>>Thank you, jainen.<<

You are very welcome. You can always count on me for an example of arrogance.

[cred65]

What does "BUMP" mean?

Curious Booger

This was originaly a communist plot, operation code named BUMP, that was designed to infiltrate our Military Industrial Complex (MIC) with the intent to ensure soviet dominance of the universe.

So when Plan A failed all of the KBG opertives (MIC moles) were reassigned to recruit unemployed CCCP (Russian) scientists to infiltrate the tax system of our country with the goal to destroy the capitalistc base of the USA by simplication of the tax code. And these commies have had much success to promote their philosphy of Confuse Confiscate Condem Persecute (that's the old CCCP) into our tax culture. This was their unplanned Plan B for which our intelligence agencies have lack of intelligence. CATCH 22

curious booger, I hope this helps. But when you see anyone posting BUMP they are probably a commie!

I know we can survive. We allways get stronger in the face of adversity.

[Julie]

As usual, you can count on me to spoil your comedy show with a straight answer.

"Bump" refers to bumping something up a list. In this case, a question which was slipping down the list without having been answered yet. So a reply was posted to give the thread a later date/time stamp and keep it from disappearing.

Sometimes people do this just because they want more people to read something they enjoyed reading. Someone did that with one of my posts once, long ago, and the consequences are too horrible to remember.

[cred65]

As usual, you can count on me to spoil your comedy show with a straight answer.

"Bump" refers to bumping something up a list. In this case, a question which was slipping down the list without having been answered yet. So a reply was posted to give the thread a later date/time stamp and keep it from disappearing.

Sometimes people do this just because they want more people to read something they enjoyed reading. Someone did that with one of my posts once, long ago, and the consequences are too horrible to remember.

Bump

I just couldn't resist the temptation. Help me.

[joelgilb]

Bump

I just couldn't resist the temptation. Help me.

I still thing its a secret code for the CPA agents out here. Just call me OY OY 7 here.

Joel

[indyscott]

Julie got it right.. I simply saw poor Chad's legitimate question slipping into oblivion unanswered, and decided to "bump" it back up to the top of message list where it might have a chance of getting the attention of someone who actually gives a .... I mean someone who might be knowledgeble enough, and care enough to take a few moments to give a meaningful reply.

Hopefully Chad figured this out on his own, or else took it elsewhere.. How about it Chad? Chad? are you still watching?

zzzzz

[chadw]

Julie got it right.. I simply saw poor Chad's legitimate question slipping into oblivion unanswered, and decided to "bump" it back up to the top of message list where it might have a chance of getting the attention of someone who actually gives a .... I mean someone who might be knowledgeble enough, and care enough to take a few moments to give a meaningful reply.

Hopefully Chad figured this out on his own, or else took it elsewhere.. How about it Chad? Chad? are you still watching?

zzzzz

Yeah I'm still watching. I do appreciate the bump, and I did rather enjoy the discussion on the whole background of a bump. As of now, the group did decide to form the LLC. Even if they lose the interest expense and real estate tax deductions they would rather keep a formal LLC in place to limit their liability just in case they do some renting of the property they end up buying.