Best Buying Practice: Corp, S-Corp, LLC or Self Directed IRA?

Question

Hi all,

I'm just starting my real estate investor journey. I have a property I'm my crosshairs, but before I pull the trigger I'd like to get some community feedback on the best entity to purchase under for tax benefit and personal protection. I'm currently wholesaling and flipping sfh's and 2-4 flats. Any help would be greatly appreciated.

Sincerely,

Nate

Carl Fischer · Answer

@Nate Anderson

Asset protection and taxes have their own set of circumstances. As the others say talk to the professionals.

If you want the money now don’t use the SDIRA -if you want tax free or tax deferred earnings use the SD-IRA. If you are 59.5 + years old you may be able to use the SDIRA now.

This is better discussed in a call. If you want we can schedule one-let me know.

Scott Smith · Answer

There is a lot of general information you can get on BiggerPockets - like this article - but you would honestly want to sit down with an experience CPA and have them give you the pros/cons of your options. There are a million variables that general advice can't account for, so it's best to have someone with more experience walk you through early deals and give you some guidance. I can DM contact info for a good CPA if you want it, just shoot me a message.

This isn't legal advice, just my opinion as a real estate investor.

Nate Anderson · Answer

@Carl Fischer Thanks for replying. I'm actually not doing anything right now. As I stated in my message I have a property I'm about to pull the trigger on and was looking for the best entity to purchase the property under with regards to taxes and personal protection.

@Lance Lvovsky Thanks for replying. I have a call with a real estate focused cpa firm later today.

Lance Lvovsky · Answer

@Nate Anderson

Speak to a CPA who can advise you. Generally a S Corp is good for flipping but again it is all based on facts and circumstances.

Carl Fischer · Answer

@Nate Anderson

How are you doing it now and why?

Best Buying Practice: Corp, S-Corp, LLC or Self Directed IRA?

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