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 Amazon.com and you will find what you are looking for…Happy investing!
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
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.