Closing on first flip, now what??
Just got word that the buyer for my first flip was approved by the bank and we'll be closing 12/9. I created a solo LLC that is owner of the house (may have just been a waste of money) but I was sure to try to keep all expenses paid with a paper trail through the LLC.
There is somewhat of a long winded explanation, but I have people to pay after the property closes (as opposed to paying them upfront for their help). The actual payout (after already paid costs) will be in the 60K range, 20 of that will be paid out after the fact to people other than myself.
My main question is, what I can do to attribute the lowest possible tax to that 60K? Should I purchase things that could be considered a company expense before the end of the year? I have yet to talk to a CPA but that is my next stop. I'm also gainfully employed outside of real estate and believe I'm past the social security income limit before tacking on this income.