Capital From Selling Own Home
Hello BP Community!!
My wife and I decided to sell our home and invest whatever profits came out of the deal. In the meantime, I have been binge watching YouTube videos, networking at REI events and attending any seminars that pass through the Tri-State area.
Our home sold within 2 weeks in the market and we will close in the beginning of November.
My question is: we created an LLC to support our future Rehab and Flipping dreams. Should the profits go directly to this business account for future down payment?
Do we have capital gain fees because we sold 1 month short of 3 years in NJ?
How does this (LLC/sell of our home) affect our personal taxes?
When is a smart time to create a C-Corp? Asking since, we will like to at least have another LLC created for a rental property in the near future.
Any other recommendations to do with the profits?
Your help is greatly appreciated!
Most Popular Reply
I would recommend you speak with your CPA rather than getting opinions from the Internet regarding your tax implications now and future as well as what entity is best for your personal situation and goals.
I do recommend you invest using an entity for asset protection and in regards to flipping, typically, not always, an S Corp is best for a number of reasons - speak with your CPA on this.
Your gains from the sell of your primary residence can be used as you see fit. You may invest that capital directly into a newly formed business entity bank account as a capital contribution by owner which could then be used for down payment, construction, holding costs, etc.