Rental Income Tax - avoid?

[Aaron Matassa]

Hey all. I searched for an answer here but haven't found it. If I missed it, please let me know.

I'm in the planning stages. What I would like to do is get a multi-family property and collect rent (gasp!)

But when the profits from the rent, i'd like to put them in a high interest savings account(1%) completely separate from my accounts. When the account is large enough, use it to purchase another property. So basically I don't want to take an income from the investment. Is there a way to avoid paying an income tax on the money since i plan to reinvest it 100%?

I understand that an LLC is just a passthrough. Is there a way to do this with an LLC? Or another corp? I do plan to talk to a paid CPA, but I just want to do some more research first.

Thanks in advance

[Bill Gulley]

Realize too, that if you show expenses to reduce the taxable income, you won't have the income necessary to finance new projects and may create a liability for refinacing the property you hold. I suggest you bite the bullet starting out as you'll usually need income to move forward. :)