Client wants to place a rental property into a single member LLC. He is not currently using the property as a rental property but is living in the house. He will then pay the LLC a monthly rent and the LLC will pay all of the expenses. He wants to report the rental income and expenses on a Schedule E . If he treats the LLC expenses as itemized deductions he will have a limitation due to SALT and a limitation on the mortgage interest deduction since his other personal mortgage debt exceeds 1 million.
The taxpayer is the sole member of the single member LLC . I would think that the LLC expenses are deemed to be personal use and only deductible as itemized expenses ?