Paying Taxes? - Posted by Michael

Posted by KevW Russ Whitney Trainer on June 06, 2001 at 16:28:35:

Dear Michael,

Here is how to handle the taxes and which legal tools to use to help minimize the taxes.

We teach that for your quick buy-and-sell properties a corporation is the proper legal tool.

For your rental properties a limited partnership or a limited liability company is the proper legal tool.

There are several options for what you can do with some or all of the money:

  1. You can pay yourself the money out of these companies. You will pay the taxes on the money when it is received if you pay yourself as an employee. You will generally pay the taxes on a quarterly basis if you pay yourself as an independent contractor. At first you can use the company called “Paychex.” They are in all states and are very inexpensive for processing payroll.

  2. You can buy things that you want to own with the money. If you buy them with company money and they are tax deductible for business purposes you get a tax deduction.

  3. You can do a tax-deferred (section 1031) exchange. As long as you follow the rules (see tax professional) you will not pay any taxes on the money you roll over to another property.

Hope this is useful to you.


Kevin Wessell
Russ Whitney Trainer
Purchase Option Camp
Los Angeles CA

Paying Taxes? - Posted by Michael

Posted by Michael on June 06, 2001 at 11:10:51:

I have a question about how you guys and gals handle your taxes on profits made throughout the year. If you make a large lump sum profit(say of 10,000 or so), do you have a system to were that money is taxed before you recieve it or do you just worry about it when you file your taxes?
I just wanted to find out the best way to handle the money throughout the year to avoid problems in april.

Michael KY.

Re: Paying Taxes? - Posted by Doris - Va.

Posted by Doris - Va. on June 06, 2001 at 13:09:24:

Good question! (nt)