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Build AirBnb-type rental on homesteaded primary residency property - Implications?

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jrgrtx

New Member
Good afternoon all. I'm new here and quite honestly do not even know where to start. My primary residence is on 18 acres of land in a unique location that is high in tourism. There are a few AirBnB type cabins around us, not many, that stay rented year round. We are considering building 2 cabins on our property. Our property is actually the closest to this major tourist attraction of any properties in the area making it very attractive to visitors should we do this. My questions/concerns are this: If we do this, what tax implications to I have to my primary property? Do I create a corporation and separate the cabin properties from my primary residence which creates another layer of expense? How would this affect my primary homeowners insurance? Etc., Etc. Any advice or even direction on where to go get answers would be appreciated greatly.
 
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Keith85

New Member
I suppose that using a limited liability company for a rental property business is a tool to protect your liability, get tax breaks, and gain other benefits for your company. Not only are your personal assets protected in the event of a lawsuit arising from an injury on your property, but you will also be able to maintain any rental-related debts distinct from your own, thanks to the liability protection provided by an LLC.
 
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Sabrinellka1

New Member
I agree with Keith. An LLC is the best option which allows you to protect your assets. So, I guess the choice is quite obvious. You know, when I only started my Airbnb business, it seemed to be so difficult. I remember the first day when I had my first guests. On that day, I bought the Best smart lock for Airbnbs. I was nervous and happy at the same moment. So, now I have more than 10 apartments all over the world. That’s how I earn money for a living. So, from my experience, an LLC is the best option. You won’t regret it. Anyway, you should talk with your lawyer. He must know more about it. BW
 
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