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Updated almost 5 years ago,
Investing In Real Estate, setting up entities and taxes
Whether you own real estate in your name, an LLC, corporation etc can you please fully explain with an example how you manage taxes?
for example let’s say you owned a rental property in an LLC taxed as a disregarded entity and your profit after all expenses such as maintenance, debt and taxes was $100k and your personal tax rate was 30%
1) Would You pay 30% on that $100k as taxes so $30k and the remaining $70k is yours to keep with no further taxes?
2) For LLC's taxes as a disregarded entity where taxes are paid on the owner level does the money have to do distributed to the owner so they can afford to pay the tax or can the LLC pay it?
The taxation has been confusing so someone please just use an example explaining everything it’s how I learn.