All Forum Posts by: Leslie Zhang
Leslie Zhang has started 4 posts and replied 12 times.
Post: Profit Sharing and Tax Responsibilities...
- Burnaby, British Columbia
- Posts 12
- Votes 0
Hi Jon,
Thanks for your reply. I should have mentioned that the company is an Arizona company - an LLLP. This was set up for the purpose of flow-through income.
However, I didn't set up any formal agreements with my investors, and the projects are fix and flips with 90-120 turn over times. With that said, I don't know if I can call the payouts dividends.
Professional advice is needed, but I just want to make sure I go to the right professionals. One firm I spoke with, wanted 14K right off the bat to do a tailored plan...
Post: Profit Sharing and Tax Responsibilities...
- Burnaby, British Columbia
- Posts 12
- Votes 0
I have a new real estate investment company that has a 50/50 or 40/60 split with my investors.
My question is, if I pay the investors out right away, they would receive their portion pre-tax. Will I have to pay the taxes on the amounts given to the investors at a later time, thereby diminishing my own returns?
To make matters a little more complicated, both myself and the investors are Canadian (although, on of the partners in the investment company is a US citizen as well).