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Updated 3 months ago on . Most recent reply
Taxes with hard money lenders
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
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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.
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