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Updated about 6 years ago on . Most recent reply

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Jesse Clark
  • Davenport, IA
3
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Shelter profits in c corp. Keep off personal tax forms

Jesse Clark
  • Davenport, IA
Posted

I currently have student loans that the payment is based off of income(AGI). If I were to put my properties into LLCs that report up to a C corp where profits stayed and could be used to buy more properties, would that stay off my tax forms? Reducing my ajusted gross income?

I planned in funneling profits into new properties anyway. Is an ok strategy or would there be a better strategy?

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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
ModeratorReplied

Many rentals show losses on paper....

So it may actually lower your AGI 

Having it go into a C corp means you're paying 21% on any profit that does show 

and then to actually get that money out - IE transfer it BACK to an LLC to buy another property (because we don't want the rentals in the C corp directly)

You're going to pay distributions on that cash taken out of the Corp. 

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Kolodij Tax & Consulting

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