Tax Planning for Louisville Real Estate Investors & Hosts
We work with Louisville landlords, short-term rental hosts, investors and developers, from one rental to a portfolio of property LLCs. Most of the savings in real estate come from federal rules, but the Louisville and Kentucky layer is where filings get missed.
Call (502) 805-7768 or book a free consultation.
What's different here
Every property LLC has a Kentucky filing
Holding each property in its own LLC is common, and each one has Kentucky obligations. A single-member LLC that the IRS ignores for income tax still files Kentucky's limited liability entity tax return, Form 725. Five properties in five LLCs means five of them every year.
Short-term rentals: registration and three taxes
Louisville requires short-term rental hosts to register with both Planning & Design Services and the Revenue Commission, and advertising an unregistered rental is prohibited. A stay under 30 days carries Kentucky sales tax, the state transient room tax and Louisville Metro's transient room tax, and whether the platform collects each of them is worth checking rather than assuming.
Your assessment is worth a look every spring
Jefferson County PVA assesses property at fair cash value, and each spring there is a window to review it and appeal through a conference with the PVA. On a rental, a high assessment is a cost every year until someone challenges it.
Cost segregation, federal and state
A cost segregation study can front-load depreciation on a rental. Kentucky doesn't follow federal bonus depreciation, so the benefit on the state return is smaller and slower than on the federal one, and the plan should show both.
Investor or dealer
Buying, renovating and reselling in Louisville's older neighborhoods is a good business, but doing it often enough can make you a dealer in the IRS's eyes, which changes how every sale is taxed. That line is worth knowing before the next closing, not after.
Common questions
Do I need to register my Airbnb in Louisville?+
Yes. Louisville requires short-term rental hosts to register with both the Office of Planning & Design Services and the Revenue Commission, and advertising an unregistered short-term rental is prohibited. Zoning rules also apply, so check your property before you list it.
My LLC is disregarded for federal taxes. Does it still file in Kentucky?+
Yes. A single-member LLC owned by an individual files Kentucky Form 725 for the limited liability entity tax even though the IRS disregards it for income tax.
Do rentals of 30 days or more pay the room tax?+
Louisville Metro's transient room tax does not apply to accommodations supplied for a continuous period of 30 days or more. Shorter stays are taxed.
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