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Updated about 3 years ago,
Tax Deduction's for investment property owner
Hello all,
For the new year I wanted to organize my finances and maximize profits. I am currently reading Tax Free Wealth by Tom Wheelwright.
Here is the situation: I own 2 properties in my personal name, but collect rent and pay mortgages/expenses through a LLC business account.
At most of my dinner's I talk about real estate and this deal specifically, I buy contractors lunch, and fill up my tank with gas driving there. A few month's ago the furnace had to be replaced, that would have brought my balance down lower than the mortgage amount (so I paid it on my personal card but kept receipt). Should all of this be going on my LLC's credit card? I am worried that I will run out of money in my business account and won't be able to pay for things out of the LLC checking account. What if my balance run's so low I don't have enough for the mortgage, do I just transfer from my personal account? The goal Is to eventually have enough money to keep them separate, but starting out is a weird in between time.
A majority of my income comes from my W2 job, but I am trying to lower my taxes as much as possible. Real estate seems to be the right tool for this! Thank you for taking the time to read, I know that all the responses will have to be run by my accountant and can't be taken as official legal advice.