All Forum Posts by: Thea Linkfield

Does anyone have any reccommendations for Contractors who refinish hardwood floors? I have a house in the San Marco area that is older.

Thanks!

@Michael Plaks this is very helpful. I appreciate you reading my exact questions and providing such a relevant response! For now, I'm just going to keep it as a single-member LLC and I will have my 2 partners be lenders, as they are each providing different sums of money. This will also work better as I move forward and do different deals, these partners may not be involved in every one.

Thank you @Basit Siddiqi that cleared some things up for me! I really appreciate the knowledge and clarification everyone is bringing to the forum.

It's my understanding that S-corps have to pay pay-roll taxes for the salaries paid to the members in addition to the income taxes the members pay. If using a multi-member LLC, would there be any taxes on the distributions to each member in addition to income taxes for each member?

(2) Will you ever have to pay capital gain tax in addition to ordinary income tax? ** 

@Jon Holdman from my understanding, getting a GC license is more of a big deal than just taking a test. My partner is trying to get his now, but he has to have proof of construction experience for more than 5 years. 

@Brian Schmelzlen so if I elect the S-corp, which is essentially what I want to do, there's no way to have different members put in different amounts of money? Is there any way around this?

@Account Closed If, in order to split the profit up the way we see fit, can we just file as a multi-member LLC (Schedule E) and have a standard operating agreement that states what each person's responsibilities are and profit shares will be? Our profits would be taxed as ordinary income correct? Although, it wouldn't matter too much if the profit was getting taxed from ordinary income compared to capital gains because we held the property for less than one year, correct?

TWO more questions! (1) If I purchased the house in 2017 in my name, and we aren't going to sell until 2018, does it matter if I put the house in the LLC's name in 2017? (2) Will you ever have to pay capital gains in addition

Very helpful @Brenton Way thank you!

Hey Newbie question... I'm noticing a lot of these answers start out with: "if you're a real estate professional"... so what classifies someone as a real estate professional? @Brenton Way

Thank you @Ashish Acharya ! This all makes sense.  This tax year, we won't be making much, but I'm trying to plan ahead as we scale. I'm anticipating making +80k in profit next year, so for this conversation let's pretend we are making that now.

I know it's possible to switch my property into the LLC, but what about all the finances we've already spent out of our own bank accounts? Is it possible to start an LLC bank account and some how transfer ~$80,000 of spendings into the bank account? Or is that all too late now?

Also, @Ashish Acharya I tried your website from your profile and the link seems to be messed up.

What are some driving apps your speak of? Maybe you're not allowed to say on the forum...

Hi all! I have a property I bought through the Duval County Foreclosure website with cash. I am working with 2 people on fixing it up and flipping it. The property is in my name. We are going to split the profit evenly 3-ways when we sell it. We are tracking all of the expenses basically on an excel spreadsheet to track who is buying what, when and we have electronic receipts for everything.

We all work full time and are doing this on the side. I'm reading The Book on Tax Strategies for the Savvy Real Estate Investor and I'm just getting to the Entities Section.

I just made an LLC. Should I switch the property over to the LLC for tax purposes? Should I convert the LLC into an S-Corp?

Also, we're doing all of the work ourselves and it's a bit of a drive to and from the property. In order to write-off the trips to the property, is keeping a log enough? It seems like anyone could just fake a log...