Maine Question

[JohnH]

Met with a prospective client today, and an interesting scenario developed. He is a resident of NC but owns a residential rental property in Maine. He is planning to buy a second residential rental property in Maine in the coming months.

I suggested that he talk with a Maine attorney about the advisability of both rental properties being held in an LLC for personal liability protection and reporting on his tax return (Schedule E) as a disregarded entity. Looks like the Maine annual fee for an LLC is only $85, so that's reasonable.

I've never prepared a Maine return before - can anyone tell me if this is inadvisable from a Maine standpoint for any reason?

[Burke]

Can't comment on the Maine question, but an estate attorney in VA recently advised that putting out-of-state rental property in a VA LLC was advantageous in allowing the executor to settle without a lot of out-of-state complications. Might check into that as far as NC is concerned.