All Forum Posts by: Account Closed

@Brandon HallThanks Brandon.  I just want to add, I did not mean any disrespect in asking John as well.  I appreciate and value your advise:)

I just talked with my CPA and he said there is no requirement to treat the income as ordinary unless I got into development.  I only mention it in passing and not as an argument.  I just moved to a new area and will seek new financial help.

Thanks again.

@Kevin Zimmer  I am looking at counties in the middle of pa.  The sheriff sites vary so much in providing what sales are coming up.  Think I am going to just go old school and go to the courthouse.  Thanks. 

@Steven Hamilton II  Hey Steve.  Well up to May of this year I was working full time for an employer so I was treating all home sales as either short or long term gains.  I guess now that I am a full time investor I should treat at least some of this income as normal income, and the remainder as a dividend via a s-corp tax approach. 

What are your thoughts?  Do you think its unacceptable to invest full time and still report income as short/long term gains.

@Brandon Hall   Well that stinks.  Thanks for your help tonight.   I will def raise these issues with my cpa.

Sorry Matt.  Prob should have started new post.

@Brandon Hall  Thanks.  Well up till the last 6 months I was working a 9-5 job, and had been prior to investing.  Would you think the capital gains approach is safe for an investor who is working a full time job, on top of investing?

@Steve Vaughan  Yes.  My mistake.  I am aware you can elect to be taxed as a S-corp.  I still have the same question.  I guess my concern is that my CPA is sending me in the wrong direction.  I had asked about dealer status being forced on individuals, and he said that it is highly unlikely given the volume of around 20 flips a year.

@Brandon Hall  I, with the help of my CPA, have been taking advantage of the long term and short term capital gains on my flips for many years.  They are in a sole  member llc.  Why would you recommend an s-corp.  I understand there are some trades between the  2 entity types, but from a tax saving advantage the llc is the winner.  Right?  I would like to add, that I am not interested in collecting on social security.   Am I missing something?  Thanks.

@Ethan Vegas Thanks for pointing that out. Although I am in Pa my LLC is out of Navada. They are favorable to the LLCs, like Wyoming. Sounds like you read "loop holes in real estate ". It is one of my favorites. They cover that topic extensively.

Another benefit I did not see mentioned is asset protection. If an LLC owned a property free and clear and is sued, you risk loosing much more equity than a heavily leveraged property. "Equity stripping".