Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 3 months ago on . Most recent reply

User Stats

50
Posts
3
Votes
Glenn N.
  • austin , TX
3
Votes |
50
Posts

Taxes with hard money lenders

Glenn N.
  • austin , TX
Posted

How do hard money lenders that do not put them selves out to the public and lend only to 3 individuals I know that have LLC's. You pay federal taxes , how about local taxes ? The llc's are in Florida but I live In Texas .Thx U

Most Popular Reply

User Stats

42,724
Posts
62,921
Votes
Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
62,921
Votes |
42,724
Posts
Jay Hinrichs
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Quote from @Glenn N.:

Yes Joshua I do some hard lending small amount as I said to some people I know. Right now treating it as interest but would like to make it active income to do a solo 401k . Im not sure if I do enough to call it active but it's my only gig right now since I retired .No involvement , I go check on the property in Colorado on occasion to check it out the condition.

from my decades of doing this you pay income tax to the state you live in.. So if Texas has no state income tax I dont think you pay tax on any loans in other states. I could be wrong though.. I just dont recall in my lending years doing income tax in any other state than the one I live in.. Of course in the JV deals I do where we come into title I pay tax at the state level if there is tax.

business profile image
JLH Capital Partners

Loading replies...