My friend and I would like setup a home office at his parents house. They will soon be vacating, so she will be the only resident at the place. She told me that their home is setup as a LLC, so it can be passed to her or inherited down without the usual legal penalties. I think they also currently get a break in taxes (she and the house are in NY).
Is this a reasonable thing to do? Are there benefits/risks involved? Should it be changed? I know the CPA who originally set this up is no longer around, but this just raised a lot of questions with me, especially if I was to work there. Thanks!
Don't know why they would have bothered setting up the home as an LLC, there are expenses in doing so depending on the state (MA charges a $500 fee each year for being an LLC). Also, unless the parents have a large estate there may not be any estate taxes involved. They might want to check with a tax attorney and see if what the CPA did was legal or not. They might find out they paid him big fees for nothing. |
