What tax benefits can I get?

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Linda Weygant · Answer

I would also caution against putting your real estate rentals into a C or S Corporation.  Only under very specific circumstances is this considered a good idea, so you'd want to make sure you understand the pitfalls (there are a lot of them) very well before going down that road.

An LLC is generally the preferred entity for holding real estate, but it is a pure liability protection play (talk to a lawyer about how that works).  The taxes are exactly the same for an LLC as for owning them yourself, the only difference being that you now get a tax deduction for all the expenses necessary to maintain the LLC.

Eric E. · Answer

OMG, I should proofread, so many spelling errors in my last comment!

Eric E. · Answer

Solo 401k can provide benefits, but it's doubful that you can transfer your CURRENT properties into the solo401k.   And the Solo 401k is intended for retirment, so you cannot enjoy anyu of the profits until you reach retirement age.   (You can borrow against the solo 401k, but it's realtively short term).    Another Caution:   Not evey CPA is knowledgeable when it comes to these matters...... so ask for references from other investors, shop around, etc.

John Thedford · Answer

You are already getting tax benefits. I would ask you to talk to your CPA about a retirement plan such as a SOLO 401K (there are requirements that must be met). Also, make sure you are taking all deductions legally possible. When you buy a computer for your business, a printer, supplies, use gas driving to a from-all these may be tax deductible. The IRS LOVES real estate investors and gives us a tax break for working our way to wealth:)

What tax benefits can I get?

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