Does the 50% rule include taxes?

[Arturo Borges]

Hey!

Does the 50% rule include taxes? Also, how are the taxes on multifamily properties made? As a regular LLC annually, quarterly, monthly?

[Scott Skinger]

it sounds like you might be referring to income tax and not property tax. @John Leavelle is correct about the 50% rule, although you are better off just getting actual numbers and running your numbers on the real thing from the beginning.

LLCs are pass through entities, so gains/losses pass through to your personal return and are calculated annually when you file your personal return.