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Updated over 4 years ago, 04/30/2020
Tax Strategy, Construction LLC?
I'm a newbie investor in the Baltimore market, and am fairly hands on rehabs and construction process. I plan to act as the General Contractor, sub-contract some rehab work and take on some myself to keep my rehab costs low to start. My thought is these activities are active in nature and I'm looking for strategies to move some of my expenses move from the passive category to active so I can get some tax benefits against my W2 income.
Would creating a Construction LLC be a good idea to implement this strategy? Any other recommended strategies that will help offset W2 income taxes?
Thanks all!