All Forum Posts by: Gary Cornwell

 Thank you.

 Thank you.

If I were to flip a house, will the earnings be offset at all by the depreciation of other rental properties that I have?  So for example, if I have 200K a year in depreciation on properties that are not being flipped, but make 300k on a flip, will the 200k depreciation offset the short term capital gains of the flip (300k) to where I would only own short term cap gains on 100k?

I'm in Texas, if that matters.

Thank you!

Does anyone have input on a really good/thorough lease agreement for commercial office space rentals in Texas?  It is a office condominium complex where we own 6 of the 8 suites.  Thanks for any advice.   

Thanks everyone. 

Please for give the newbie question, and if the answer has already been posted, please just reply with a link to that thread if you would, please.

I own a small business (LLC with 35 employees) currently, and it has been pounded into my head that any money I take out of the company has to either have already been taxed and is therefore a distribution of equity, or it has to be classified as a loan that I must pay back to my company with interest.

I am beginning the journey into real estate investing and I am confused as to getting cash out of the real estate LLC that I just set up. Let's say that my properties cash flow 50k in a year, but my taxes show a negative profit due to depreciation, and all the other write offs. How do I get at that 50k without the tax man coming after me? And similarly, if I have a property that I do a cash out refi on, and I end up with 250k in cash, how do I access that money. I know that loaned money isn't taxable, but it seems like it is just this magic bucket of cash that is sitting in the bank. How do you access it, and how is the entry shown on the books? Is it also considered a loan to me? Is it a distribution?

Any help would be greatly appreciated!!

-Gary

Please for give the newbie question, and if the answer has already been posted, please just reply with a link to that thread if you would, please. 

I own a small business (LLC with 35 employees) currently, and it has been pounded into my head that any money I take out of the company has to either have already been taxed and is therefore a distribution of equity, or it has to be classified as a loan that I must pay back to my company with interest.

I am beginning the journey into real estate investing and I am confused as to getting cash out of the real estate LLC that I just set up. Let's say that my properties cash flow 50k in a year, but my taxes show a negative profit due to depreciation, and all the other write offs. How do I get at that 50k without the tax man coming after me? And similarly, if I have a property that I do a cash out refi on, and I end up with 250k in cash, how do I access that money. I know that loaned money isn't taxable, but it seems like it is just this magic bucket of cash that is sitting in the bank. How do you access it, and how is the entry shown on the books? Is it also considered a loan to me? Is it a distribution?

Any help would be greatly appreciated!!

-Gary