Northville, MI · Member since 2013 · 10 posts · 3 votes
I had a Question. My partner and I just open a brokerage. I own a small rental home and rent is 900 month. Could this company buy this home from me ? If yes , and I sold it for the same or less than I bought it for would I have to pay tax on the sale ? I was just thinking of doing this so the company would have some income coming in and give the company some valuable assets. What are the tax implications on this ? In the future could the company buy More homes to rent ?
Investor · Bayside, NY · Member since 2017 · 1k+ posts · 1k+ votes
9y
Why do that? Have the brokerage company collect a monthly management fee from the rental. Before Obamacare, I formed a C Corp management company where it can have some income and from which I deduct the medical insurance and other expenses. And why would this brokerage need assets? If you buy homes to rent, it should be under a separate entity. The way you're doing it, you're mixing active and passive income.