How to Choose the Right Entity for Your Real Estate Investment
Friday, July 31
"THE TAX SIDE OF ENTITY STRUCTURING" There are three main aspects of entity structuring: legal, tax, and compliance. The goal is to find one that meets all three criteria. One size does not fit all. Structures can be changed. · Ease of compliance - What are the compliance requirements? - annual ...
Ten Reasons NOT To Use Corporations for Real Estate Ownership
Friday, July 17
Why use an LLC partnership instead of a Corporation? LLC-partnerships avoid the following corporate disadvantages by default (automatically); by-election; or by planning. When referring to a partnership the term “partner” includes a member of an LLC or more specifically of an LLC-Partnership. S...
Top Reasons Why You Should Set up Solo 401k
Friday, July 10
What is a Solo 401k? A Solo 401k is a great retirement plan for self-employed individuals or business owners with no employees or part-time employees only. Business types such as sole proprietorships, family businesses, partnerships and corporations can take advantage of what the Solo 401k has to...
IRS Audit Prevention Tips
Friday, April 03
There are many ways to reduce your chances of being audited by the IRS. As we've discussed in previous articles, the IRS has red flags for certain industries and tax filing behavior. Unfortunately, real estate investors and business owners stand a far greater chance of being audited than their sa...
Critical Review Areas that IRS Target for Audits
Friday, February 28
Approximately 1.5% of all taxpayers are audited every year. Despite this relatively small number, the IRS still causes many people to shake in their boots when contemplating the chance of an audit. The odds are low that you would be picked for an IRS audit because the IRS does not have enough per...
The Importance of Entity Structures and Recordkeeping
Friday, January 31
If you don't plan accordingly for your investing goals and choose the correct entity structure, the taxes will definitely hurt your bottom line in a big way. As a real estate investor, you need to stay updated on which entities are on the IRS hit list. Recordkeeping also plays a big part in wealt...