All Forum Posts by: Michelle R.

Hi  @GeorgeBlower

The Form 1065 for my property LLCs is blank for that line.

It seems as though your total income would affect your ability to qualify for a mortgage. What you have mentioned above, pertains to just the loss shown on the tax return, for one particular property. E.g. if someone has 50k income minus a loss, they still have 40k in income. Depending on the price of a property, they may still qualify for a loan regardless of a loss on one property. 

Thank you for your reply, Dmitriy. My thought was that I could possibly open an entirely new company, likely a C-Corp. I would then pay a hefty management fee from the property owning LLCs to the C-Corp. I could then set up a 401k in the C-Corp. Just wondering if this is something that is done, and if so, what's it called. I tried to google but maybe my keywords were off. I will ask my accountant about it.

What are the better, less expensive solutions to Costar? 

I do have a Costar subscription, just wondering what else is out there?

My brother and I own together a few LLCs which generate 200k to 300k profit after expenses, per year. These are for commercial real estate we own. We have been passing this profit to ourselves as a K-1 distribution. We would like to instead put the money in a 401k. (This would have max contribution 54k with employer match). I believe a property-owning LLC can't open a 401k. How can we go about our goal of contributing to a 401k? Is there a related entity we can form to use for this purpose?

I would appreciate any and all insight on this! Thank you in advance.