All Forum Posts by: Ben Sinkunas

There was a property that was sold at a foreclosure auction in the county we invest in based on the judgement on the property from the homeowner's association.  This same property now is listed to go to foreclosure auction again by the judgement received from the bank on the property.  Does this mean that the person who purchased the property on the first foreclosure auction loses the property since now the bank is foreclosing on the property?  Thanks for any help on this.

I am looking at a property heading towards a foreclosure auction and our title search has uncovered 3 IRS tax liens on the property. We did the research on these and found there is a 120 day redemption period for the IRS to come in, buy the property back from us and sell it themselves.

Has anyone purchased a home with IRS tax liens and what has been your experience with buying these?

Thanks!

Ben

@Paul Choate

Hi Paul,

In general, the major difference is that S-Corp income is only subject to federal income tax where as partnership income is considered self employment income and is subject to both federal and self employment (payroll) taxes. There can be more complexities to it and it is good to consult with a tax advisor/CPA firm about the most advantageous way to set things up. We can talk more by email if you want.

Ben

Paul,

You may know this but, even though you have elected to be taxed as a partnership, you will have the same tax consequenes as your single-member LLC. You are subject to federal and self employment taxes and you may want to look at setting up an LLC that is taxed as an S-Corporation, depending on the state you chose to incorporate in.