Just report it on Schedule E, and you can deduct real estate taxes, mortgage interest, insurance, etc. The personal home in an LLC won't do any good, and may actually harm you when you sell the home. I assume you mean for tax reasons, correct? Because it'd be kinda crazy to not put a rental property into an LLC. I own an apartment building, this lady fell down the stairs saying there was a problem with the elevator(it's two floors, not Trump towers, but I digress) and the railings. There was nothing wrong with either and it turned out her son was pressuring her to sue because he just assumed the owners would settle and had money(we don't and we didn't). But without the LLC, my Dad who invested with me...they could have gone after everything he had. I now have one on each property I have, including a cabin I own in the woods as people have broken in there and it's in an incredibly rural area. If something happens and I'm deemed to be at fault somehow, the most they can get is the value of that cabin. Correct, for tax reasons. Rental properties should be in an LLC for legal purposes, and I recommend to all of my clients, but are not necessary for tax purposes. For the personal residence, an LLC is usually a bad idea. First, an LLC is a business entity. Most personal residences have no business activity. If sued, the courts would probably void the LLC status. Second, by transferring the home to an LLC, you lose the home sale exclusion. Therefore, if you sell your home at a gain, you will be paying taxes if it is in an LLC.