Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Tax Liens & Mortgage Notes
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

34
Posts
7
Votes
Sean Thompson
  • Investor
  • Acworth, GA
7
Votes |
34
Posts

Llc flow through question

Sean Thompson
  • Investor
  • Acworth, GA
Posted
Hello . I'm just getting started. Currently have one property. I'm wondering how to best maximize taxes while staying legal. -- I know that businesses don't get taxed on their expenses, only the profits. From that standpoint it would make sense to have the business pay the debts rather than myself. If the money enters my personal account it counts as income to me and gets taxed as such, where the company paying it direct counts as business expense and saves taxes. -- My questions are : am I thinking about this correctly ? And is it legal / does it muddy the "corporate veil" protections. -- Example : I used a personal credit card to acquire this first property. Can the business pay directly to this account to pay off the credit card ? Or do I legally have to pay a salary to myself , then use that to pay off the credit card? The difference being ; 1) company pays direct to my personal credit account , thus counting as a business expense saves taxes. 2) company pays me salary , business expense , but taxed as income, then pay off credit card. -- I'm looking for staying legal , while maximizing tax savings. Thank you for your time and wisdom

Loading replies...