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Updated 5 months ago,
What are your most helpful tax strategies? Can I create a business to self manage?
I have 8 doors that are investments. I have children and a fulltime job. I would like to find tax strategies to reduce my taxable income. All houses right now are mortgaged through my name/social, but deeded over to real estate trusts. My tax accountant files them as investment properties under my social. I would like to accomplish the following:
1. I am looking into purchasing more properties, and want to have some kind of Holdings Co where the taxable income flows through so I can tax advantage of the corporate tax rate.
2. I self manage 6 of the 8 doors. Can I pay the management company I set up a mgmt fee? Do I have to pay an employee a mgmt fee (myself?) or, can I just pay the company and keep the income in the company and then pay the shareholders (me), dividends, or the owners (me) distributions?
3. I would like to set up the holdings company to have multiple businesses within... an investment company so I can own the properties under the investment company and a management company so I can earn mgmt fees.
Is this something that anyone has done and is it possible? What are some strategies you use?