Taxes, LLC, S-Corp, Payroll HELP

3 Replies

Ok so we just sat down with our CPA and we are going to be absolutely pummeled with taxes for the 2020 year.. 

Anybody have a strategies for payroll, tax strategies for rental properties, capital gains on flips, tax strategies for BRRRR's or just anything in general that you are doing?

Originally posted by @Garrett Terrell :

Ok so we just sat down with our CPA and we are going to be absolutely pummeled with taxes for the 2020 year.. 

Anybody have a strategies for payroll, tax strategies for rental properties, capital gains on flips, tax strategies for BRRRR's or just anything in general that you are doing?

oh no!!

Planning has to be specific to you and rarely changes the PY tax amounts. 

If you are taking about 2020, the biggest saving you might have is via retirement plan contribution for 2020 if you have qualified earned income amounts. We wouldn’t know unless we dig deep. 

Yes there are strategy for everything you mentioned but again have to know where you stand. 
We cannot tell you go hire your kids for 20k deduction (tax free income) at your flips/rental if you are qualified for child tax credit. So we need to know the details. 

Garrett,

I recommend finding an accountant that specializes in real estate taxation. You may want to consider working with your accountant remotely to expand your options.

I would also recommend looking for a tax strategist who is willing to work with you throughout the year, not just when preparing your tax return. You want an accountant that can help you strategize and who is responsive when you want to know the tax consequences of the decisions you are making throughout the year.

Good luck and let me know if I can be of assistance.

@Garrett Terrell

Why would you have to pay taxes on BRRRR?? Its already a tax advantaged plan since you get the money back via loan at the end of it and owe nothing in taxes.

Ask your Accountant to retract s-corp status as far back as you can, I believe you can up to 3 years back with reasonable cause if he knows what he's doing. Find someone who knows what they're doing and pay them.