Updated 1 day ago on . Most recent reply
Creating an LLC for tax breaks
Hi everyone I'm new to the community. I have zero homes but want to invest in real estate. I am considering investing out of state since I live in Southern California, & prices are really high in my area. Working in CA & making $300k+ a year we get hit pretty hard on taxes. If one were to start out and buy let's say 2 to 3 homes in other states, & create an LLC, would they be able to go tax exempt all year? If not maybe quarterly?
Basically I am looking to invest for 2 reasons
1) to obtain multiple properties that in the long term will create passive income
2) allow me to go tax exempt during the year, whether it be all year or partially. Or at the least give me a way to get a break on taxes.
I have heard of people doing this, but I was just curious how legit it is or if anyone has experience with this. Thanks in advance for the advice!
Most Popular Reply
Talk with a lawyer. The LLC is a liability protection structure. A CPA can help you with taxes. If you really want to optimize your taxes I can connect you with a tax strategist I have on my team. The CPA tells you how much you owe and a strategist helps you pay the least.
- Bradley Buxton