Private Lending & Conventional Mortgage Advice
Market News & Data
General Info
Real Estate Strategies
Short-Term & Vacation Rental Discussions
presented by
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Tax, SDIRAs & Cost Segregation
presented by
1031 Exchanges
presented by
Real Estate Classifieds
Reviews & Feedback
Updated over 12 years ago,
Private/Hard Money Lenders - Taxes
I wanted to get some advice/feedback regarding how private lenders handle the tax consequences of the income they receive from their loans. Is your Income taxed the same as your income from whatever tax bracket you fall into or are their ways to defer these taxes based on the way the loan is structured. In addition, if lending out of an LLC does being taxed as an S corp prove advantageous. Can you keep the income as retained earnings under $250,000 in the LLC and pay yourself a fair salary and invest the rest directly back into Real Estate. Not sure if these are viable options, just looking for some creative strategies!! Thanks