All Forum Posts by: Zander Dragony

Hey I had a few quick question about how you get taxed when flipping a house: At what point do you pay property tax and how does it get split between the buyer and seller? Do you have to have to pay capital gains tax if you hold the property for less than a year? Also, do you have to pay income tax on the profits from the flip as well, and if so at what point do you pay those taxes? If someone could clarify this for me that would be great!

@Ryan Saulle Hey thanks for replying! I'm aware of the tax benefits of using the S Corp election as I have consulted with multiple CPA's about this. However, because I have different investors going in on each deal, if it was structured as an S Corp that could be considered as issuing a security which would make me have to follow SEC requirements and so on. Correct me if I'm wrong on that but I'm pretty sure that's the case. Anyways, I'm looking for a way that I can give different investors equity in each deal without giving away equity in the actual entity the deals are in. If you or anyone else knows a way I could structure the entity to do that, or if I could do that under the S Corp without filing with the SEC please let me know, thanks.

Hey so I'm going to set up an LLC to flip houses under in a couple months and I need some info on how to exactly structure the entity. I know a lot of people use the S Corp election for flipping houses because of the tax benefits associated with doing so, but I have other investors on the deals I'm doing and my CPA said it would be a lost simpler to use an LLC without the S Corp election for what I'm going to be doing. Anyways, I'm wondering if there's a way to give people different amounts equity in each deal under the LLC without giving up equity in the LLC itself. I want to be the sole owner of the actual entity but have the flexibility to have different investors with different amounts of equity in each deal I'm going to be doing. If anyone has any info on this that would be greatly appreciated.

Hey so I'm setting up a separate bank account to keep the funds from my Real Estate deals and personal finances separate. In order to do so I need a business license but because I'm just setting up a sole proprietorship (I'm setting up an LLC a couple months down the line) the business address is my home address. However, over the next year or so I'm going to be moving around a lot between different cities so I'm not sure what city to get the business license in. Will I have to dissolve and set up a new business license every time I move, or is there a way to get around that to avoid paying the fees associated with doing so.

@Nathan P. Thanks for the input, I'll definitely look into that.

Hey guys, I was just wondering what types of insurance policies are typically used when flipping houses. Thanks.

@Manolo D. Thanks for the input, I'll definitely take that into consideration.

Jo-Ann Lapin What type of insurance is available for flipping?

@Basit Thanks for the input, yeah that’s exactly why I was hesitant to create a separate entity for each property. I’m definitely leaning more towards using a single entity for flipping I just wanted to hear some other opinions on it.

But you would say doing it through a single entity would be fine as opposed to creating a separate one for each deal?