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Updated over 7 years ago on . Most recent reply presented by

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Jeff V.
  • Investor
  • Deridder, LA
185
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298
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Buy and Hold Rentals and Performing Notes in same entity?

Jeff V.
  • Investor
  • Deridder, LA
Posted

I have an existing Buy and Hold Rental business, but looking to expand into Private Lending and Performing Notes.

The question I have is, is it typically ok from a tax perspective to hold Rentals and Notes in the same entity?  Just getting some feedback on any potential issues that would arise from doing such a thing, or is it typically best to keep them separate and have an entirely different entity for the notes/lending aspect of the business.

Thanks,

Jeff V

Most Popular Reply

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Carl Fischer
  • Rental Property Investor
  • Ambler, PA
1,382
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Carl Fischer
  • Rental Property Investor
  • Ambler, PA
Replied

@Jeff V.

I keep property and notes separate. Not from a tax perspective but a asset protection standpoint. Rental property has liability risk.  Notes for the most part do not have much risk or liability. If I am foreclosing on a note/mortgage I move it to another entity because it will change to rental property with risk. 

  • Carl Fischer
  • [email protected]
  • 215-283-2868
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