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To: goldworldnet who wrote (12324)	3/13/2004 9:39:25 PM
From: redfish	Read Replies (1) \| Respond to of 34894

That's a contribution to your respective capital accounts. Let's say Property is worth $500,000 and annual taxes are $20k. When you and the Mrs. first contribute the property to the LLC, your respective shares of the LLC's capital is $250,000. You then have to open a checking account for LLC so it can pay property taxes. You then contribute a check for $20 drawn on a joint account (or two seperate checks) to the LLC's checking account. Your respective accounts are now $260,000 each. If check drawn on your account, yours is $270,000 and hers $250k. The LLC takes the $20k deduction on its federal tax return (that's the downside, an additional tax return to file), and the deduction flows through to your 1040. Taxwise, you are in exactly same position as before, only benefit is asset protection.