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Updated over 1 year ago on . Most recent reply
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Creating a real estate management company...
Considering creating (or repurposing an existing llc to) a small real estate management company, specifically to manage properties that we already manage (we are a married couple w/a small portfolio and handle 85% of the needs personally.) This company would charge each investment a small percentage for management.
Purpose - to turn passive income into active income that could then be applied to self invested 401k.
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Few tax related questions if we go this route:
• We both have W2s and max out our 401ks. The additional extra would be more along the lines of a mega/super Roth (google if not familiar)
• Income from management company would be reportable, like it is today through rollup to our personal funds.
--Would there be minimums or caps for this path? If the business earned 1k a year, could that full 1k go directly to SD401k?
--Taxes would still be due on profit and the plan would be to pay other ways such as from our personal savings?
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If this post is better suited for a different forum let me know and I/l get it moved.
TIA