All Forum Posts by: Derek Foreman
Derek Foreman has started 2 posts and replied 3 times.
Post: Income, Credit Lines, and Taxes
- Lafayette, LA
- Posts 3
- Votes 0
Hi Natalie, thanks for your input. My thought is that I wouldn't pay taxes on LOC's, since they are borrowed money. However, I would be lowering my profit on the flip by the amount I've withdrawn from the LOC's, therefore lowering the taxable amount. Does this make sense? Thanks again!
Post: Income, Credit Lines, and Taxes
- Lafayette, LA
- Posts 3
- Votes 0
My partner and I are wanting to use our credit lines for personal expenses while working on our flips. This would do 2 things: 1. Ensure that we have some income while working on said projects. 2. Lower our total tax burden by reducing our end-transaction profit on each flip (assuming taxes are not paid on credit line "income").
Just not sure if this is legal......or if there's a better way. Thoughts?
I'm having trouble finding someone to give me affordable coverage (including liability) on my first rent home under my LLC. Any suggestions?
Also, as I acquire more property, will I need a policy for every property? Or can I purchase one policy for my entire portfolio?
Thanks!