Advice on Multiple LLCs for tax strategy?

[Angie Provo]

I recently attended a seminar where the speaker was talking about the various real estate businesses he owns so that he can move expenses around, thus reducing taxable income dramatically. So for example, one business employs services from another business. But in his example, there were a whole string of companies until his taxable income became so low. I cannot recall specifics (and don't know if this is a real strategy or a giant red flag for the IRS) but thought I would ask for insight.