I'm trying to get set up correctly with my real estate investment business and I have a question.
I just got my GA RE sales license in June, and I just formed my LLC in April so I can flip houses and grow my business credit (personal credit is shot), and for tax benefits. I intend to use my car mostly for business purposes. Should I put my car in my LLC name and get business auto insurance? Or do you keep your car in your personal name?
What is the best way to deduct mileage and auto expenses?
Thanks for your advice!
Forming an LLC is great and all but my CPA ( who is one of the top RE investors in my area ) would most likely suggest needing one is not so important. Yes I have one and got it like everyone else but think about it, The cost of setting one up, tax returns for it and then yearly renewals, its more like a cash flow drain.
Also you will not find any banks to make normal loans to your LLC. You will never build up credit for it so I would not really worry about putting your car in an LLC.
When you do your taxes most likely they will write off your yearly mileage ( im not a CPA ).
If I were you I would suggest paying for a consultation with your Tax man / CPA and take their advice.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Create Lasting Wealth Through Real Estate
Join the millions of people achieving financial freedom through the power of real estate investing