Can I lower my tax burden through an LLC before I own a property?
Forgive me if I'm posting in the wrong place, but I'm stuck and I'm not sure where to turn. Any direction would be appreciated.
I'm certainly spending a lot of money, time, and miles on my car, but I don't own any property yet and may not be able to for a year or two. In the meantime, I've been thinking about arbitrage, or possibly renting out my car on that AIR BNB for cars thing BP keeps advertising.
I want to reduce my tax burden as much as possible in order to put that savings toward actually owning a property, so long as I can do it all legally.
I currently work in phone sales at my W-2 job, in Richmond, Virginia. It's not Real Estate related at all. However all of my free time I'm either learning, driving around or on the internet looking at deals, analyzing deals. I put a lot of time into this even though I don't have my first property yet. I'm waiting for Jan 1 to file for an LLC, get the Tax ID number, open a bank account in it's name to start building credit and to keep the business finances separate from my own.
Some of my questions are:
1.) Do I qualify as a "Real Estate professional" to the point I could deduct my business expenses losses against my W-2 income to lower my tax burden? If not, what would I have to do to legally qualify for that this year or next?
2.) Do I actually need to qualify as a "Real Estate Professional" to deduct losses from my business's first or second year from my W-2 income?
3.) Can I somehow write off many of the miles I've driven this year or next on my car? Every mile I drive, I'm listening to a podcast or checking out neighborhoods, etc..
4.) Should I just wait until Jan 1 to create the LLC and tax ID number, and bank account?
5.) After creating the LLC and the Business bank account. Is there a legitimate way to provide those who work in the business with me a cell phone, myself included? Or would I have to have 2 completely separate phone numbers on completely separate accounts if I choose to use my business line to make personal calls as well?
6.) Could/should my LLC own my car?
7.) Who do I need to talk to before I make a move, and what do I need? I assume I need a consultation with someone. But do I need a CPA, or a tax attorney, or do I need H&R Block or what? I'm okay with hiring a professional for professional services, I just don't want to spend money in the wrong places.
Can anyone out there point me in the right direction? I would be forever grateful!