Switch Property to LLC for tax purposes?
Hi all! I have a property I bought through the Duval County Foreclosure website with cash. I am working with 2 people on fixing it up and flipping it. The property is in my name. We are going to split the profit evenly 3-ways when we sell it. We are tracking all of the expenses basically on an excel spreadsheet to track who is buying what, when and we have electronic receipts for everything.
We all work full time and are doing this on the side. I'm reading The Book on Tax Strategies for the Savvy Real Estate Investor and I'm just getting to the Entities Section.
I just made an LLC. Should I switch the property over to the LLC for tax purposes? Should I convert the LLC into an S-Corp?
Also, we're doing all of the work ourselves and it's a bit of a drive to and from the property. In order to write-off the trips to the property, is keeping a log enough? It seems like anyone could just fake a log...