Hello all,
While this is my first post I've been following the blog awhile and have done a preparatory search for other relevant threads.
My employment status is about to change, and while it's a few years earlier than I'd anticipated I may try to stay semi-retired as I live quite frugally. My primary source of income will be from two rental houses as well as two apartments on my residence that I also rent out. My initial concern with being unemployed is how I'm going to go about handling healthcare with the ACA. My gross rental income is high ($75k/yr), but my net ($22k/yr) is about a third of that (mortgage on all 3 houses), which puts me in subsidy and cost sharing territory. I assume that my gross rental income figures into the MAGI, not the net. I haven't been able to get that question explicitly answered when looking at healthcare.gov though.
All three of my properties are still in my name. My understanding is that if I put the two full rentals under an LLC, I would be able to only report profit, not gross income. This would be a big step toward managing my MAGI. Feel free to correct me if it wouldn't work that way.
Additionally, I'm curious what steps are recommended from anyone who owns a triplex as their residence, whether that should also be under an LLC.
Looks like there's quite a few readers here who live off of rental incomes so any other tips you might have for sheltering profits and managing expenses are more than welcome.