Posted by John K Haslach, CPA, MST on April 13, 2005 at 10:25:50:
Flips can be considered ordinary income subject to self-employment taxes. You can control self-employment taxes through an S Corp.
Best for investing in Real Estate - Posted by LANCE
Posted by LANCE on April 08, 2005 at 13:22:37:
What is the best entity to file when incorporating for real estate investing? I live in Florida and I am planning to do some flipping and some renting down the rode. I believe it is between a LLC and a S-corp. but have read that there may be some major tax differences. Can you guys dig deep for an exited newbie?
Re: Best for investing in Real Estate - Posted by john
Posted by john on April 09, 2005 at 22:45:50:
The way I started on the first couple deals that I did I just took them in my name. After the first four I kept a couple as rentals with a LLC and use a corp for my rehabs and flipps
Re: Best for investing in Real Estate - Posted by Lance
Posted by Lance on April 12, 2005 at 15:44:31:
I have heard that before, that LLCs are better for Rentals and Corps are better for flips. Why is that?
Lance