I own a moderately successful ad agency managing Facebook and Google ads for ecommerce companies. I have also started investing in Real Estate and am really enjoying learning here on BP.
I'm curious if anyone has any advice (or better yet, stories) on how to take money out of a company that you own and invest it into property without having to pay yourself payroll and tax it all...
I'm sure there are some roundabout ways, or advanced strategies that I'm unaware of and would like to start looking into.
All ideas welcome!
It really depends on how your ecommerce business is set up.
Some entities require payroll while some entities don't require payroll.
The issue tax wise is that likely your ecommerce business will be considered "active" while the real estate investments will be considered "passive" and it will be hard to net the two businesses together.
However, normally the good thing about real estate is that with the help of depreciation that it will potentially not add to your tax burden.
Very good questions @Mike Sebastian . I am going down the same route, building a real estate "adjacent" business to then use that active income to buy passive real estate cashflow. Interested to hear some thoughts and experiences!
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