Posted by Peter on September 12, 2003 at 15:01:22:
How quick should be the purchase/ what time from purchase date?
Defer taxes - Posted by Dr. Brent Baldasare
Posted by Dr. Brent Baldasare on September 10, 2003 at 17:10:03:
I am relatively new at investing in residential properties. I own about 20,000 sq ft of leased commercial space. My question is to anyone who can help. I recently purchased a condo and have it in an LLC. The condo has a tenant generating income. I am now about to purchase a second residential property at foreclosure and put it into the same LLC, I close in 4 weeks and have a colleague who wants to buy it at market value. My question is if I sell this property will I incur taxes in my tax bracket on the profits of the sale. Or can the money sit in the real estate LLC account and be used to pay down other debt of the corporation pre-tax? Again thank you to anyone with some advice.
Re: Defer taxes - Posted by Ben (NJ)
Posted by Ben (NJ) on September 10, 2003 at 21:03:51:
You should ask John Hyre, tax attorney and moderator of the legal forum but the profits of an LLC would flow
through to you and you pay taxes on your personal return. It may not necessarily be ordinary income but may possibly be a short term capital gain.
Re: Defer taxes - Posted by Ed Copp
Posted by Ed Copp on September 10, 2003 at 20:15:15:
A quick purchase and resale, will generate ordinary income.