My wife and I are under contract on a property that we plan to use as an STR. I'd like to close into an LLC but it's not clear to me if I should put the LLC in only my name or if I should put both me and my wife's name on the LLC. We are a married couple filing jointly for taxes. Are there negative tax implications if I put both of our names on the LLC? Thank you!

If you’re planning to pick up a property in 2024, remember that you likely won’t qualify for the STR tax benefits on your 2025 return unless the property is placed in service during 2025. “Placed in service” means it’s ready and available for rent, not just purchased. It doesn’t need to have bookings yet, but it must be fully ready for guests. You’ll also need at least two paid guest stays to establish your average stay length and meet the 7-day rule. A few important reminders: - Stays cannot be to family at any price. Renting to family is treated as personal use by the IRS. - Stays also cannot be to friends unless you charge true fair market value. - You can use friends as paying guests if it’s an arm’s length transaction at full market rent. If you want a quick explainer on “placed in service,” here’s a helpful video: https://www.loom.com/share/69f59e1de5184d2782473dfbe7bd72c0 If you’re thinking about buying or want to make sure you’re on track for 2025, our team is here to help.