How to use pre tax money from my business to invest in real estat

8 Replies

Hi Everyone, 

l would like to know, if its possible to use pre tax money from my business to acquire real estate? As l've spoken with few investors about the subject and l have been getting different answers.  

Thank you for the replies in advance. 

Your question is way too vague. There is no mention of what type of country you are investing in, asset class, deal size,etc.

Thank you for replying tommy question Joel Ownes.

My question is about to invest in the USA real estate market.

I'm planing to set up a business in the service industry in Florida, on the beginning of next year.

I would like to know what you know about investing in real estate through a business using pre tax dollar? The real estate can be residential property, comercial buildings or even a farm for the use of the company.

I hope I had clarified it enough. Once again thank you Joel, for helping me making my question more Objective.

@Pablo Vinicius in fairness your question would probably be difficult to answer for a CPA and attorney without more information about exactly what your business plan is. 

But generally, yes if you are forming a corporation or llc in the u.s. for purposes of some legal business venture, the cost of any property you need to perform the service/manufacture the product/grow the crop is a pre-tax expense of the business. 

Note that buildings and property are capitalized and depreciated at different rates and land is not. Also note that there are many different legal structures to maximize these expenses.

I don't know but imagine this is handled very similarly in Australia.

It may be different as a foreign investor, but I can use pre-tax or retained earnings from my LLCs and S-corp however I like.  My mgt s-corp provided the down payments for my last 4 houses on my behalf.

Just make sure your state and IRS quarterlies are paid, if any.   

There are lots of 'foreign' investor/entity questions on tax forms and RE sales. I've always marked 'no- I am not a foreign entity' so I have no idea what that entails @Pablo Vinicius .   Get professional advice, obviously.

Originally posted by @Jeff Kehl :

@Pablo Vinicius in fairness your question would probably be difficult to answer for a CPA and attorney without more information about exactly what your business plan is. 

But generally, yes if you are forming a corporation or llc in the u.s. for purposes of some legal business venture, the cost of any property you need to perform the service/manufacture the product/grow the crop is a pre-tax expense of the business. 

Note that buildings and property are capitalized and depreciated at different rates and land is not. Also note that there are many different legal structures to maximize these expenses.

I don't know but imagine this is handled very similarly in Australia.

Thank you very much for the insight @Jeff Kehl

What is your opinion about investing in real estate through a business ? it is  generaly worth?   

Originally posted by @Steve Vaughan :

It may be different as a foreign investor, but I can use pre-tax or retained earnings from my LLCs and S-corp however I like.  My mgt s-corp provided the down payments for my last 4 houses on my behalf.

Just make sure your state and IRS quarterlies are paid, if any.   

There are lots of 'foreign' investor/entity questions on tax forms and RE sales. I've always marked 'no- I am not a foreign entity' so I have no idea what that entails @Pablo Vinicius.   Get professional advice, obviously.

Thank you very much Steve Vaughan for your explanation and advice.

l will surely need professional advice before l make my next move, however if you could recommend me a real estate investor / financial advisor it would be much appreciated. 

l just checked on your profile and l can see that you have acquired a great deal of real estate investment experience.  .Congratulation

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