SharonA- This one really truly did have me laughing out loud! I am trying to stay even-keeled about this, but .... I didn't even mention that one of the pastures is irrigated, so ~gasp~... there might even be GRASS to graze on! We saw from some of the old google overhead pictures that prvious owners did the SoCal thing and jammed pipe corrals into every nook and cranny on the place (most of that pipe corra infrastructre is long gone, although the exterior fencing remains), but I certainly won't be doing that!
clanter-thanks for the suggestions. I was planning on the LLC, but I might need to revisit this, possibly do an S-Corp. After the earlier suggestion to have a potential leasee put together a business plan, I thought... what's good for the goose, eh ? After putting together a plan, and incorporating depreciation of capital assets like truck, buildings, etc (do you use straight-line depreciation? do you have any resources I can use to determine asset life for things like vehicles, buildings, improvements etc?), I realized that the LLC wouldn't actually "make" money for the first 2-3 years due to the start-up capital and expenses we'll have to invest in. But, again, i'd be making those investments whether it's me, myself and I with my own ponies in there, or I bring in a tenant with a business. With a tenant in there, I'll more than cover the monthly expenses of my own horses and then some. I do need to understand better what I can put through the LLC, and how the profit/loss of the LLC can be passed through to our personal incomes. We are limited on the passive income we can deduct from another rental we own, but this would be active income, no?