new investor needs some help with taxes - Posted by tom

Posted by RMW(FL) on October 31, 2005 at 11:46:20:

Make money=pay taxes. You can do 1031 exchanges to help “defer” taxes but they will become due sooner or later. Pre-Constructions are a different animal. I have bought and sold condos in FL this way. I don’t think the IRS has ruled specifically on 1031 exchanges and preconstruction condos since a person never holds title to the property, depends on how aggresive your accountant is. It is very important to have a knowledgable accountant who also invests in real estate and he will give you the pro’s and con’s of taxes and the different entities you are referring to. A good accountant is worth every penny. “Loopholes of the Rich” is a good book if you are a Kiyosaki junkie. Otherwise do a search on and you will find what you are looking for…Happy investing!

new investor needs some help with taxes - Posted by tom

Posted by tom on October 31, 2005 at 09:10:18:

Hi everyone. I was hoping to get some feedback from some investors that might know a thing or 2 about taxes. First of all I am a new investor that has recently invested in 2 pre construction deals and more recently am about to purchase a rehab.My question is should I be filing for some type of business entity to help me with taxes and to protect my personal assets? I am very concerned that when I flip these pre construction and rehab properties that I will be getting hit with some hefty taxes. Is thier any way of getting around or minimizing the capital gains taxes and should I be setting up a corporation or something for the future of my part time real estate ventures? Should I also do this before closing on the properties? I dont plan to do any rentals just rehabs, forclosures and pre construction.
If anyone could please help me on this situation I would really appreciate it. Also can anyone reccomend any good books on this?
Thanks Tom

Re: new investor needs some help with taxes - Posted by E.Eka

Posted by E.Eka on October 31, 2005 at 12:53:24:

The one thing that most successful people, businessmen or investor will say is that you should have a team of competent professionals around you. You have a plethora of concerns and the best way would be to find a CPA/accountant who deals with real estate related transactions. A book is great but you usually get what you pay for.