All Forum Posts by: Davin T

Based on the information above, it's probably better for me to register as the single member in WA LLC and skipped the Delaware altogether.

For the $200k profit, if the LLC used it to buy more homes within the same year, is the $200k still taxed or is it deferred until the homes are sold for profit?

Hi everyone. this forum is very helpful, I've been reading and learning a lot.

I'm in the process of looking to buy my first flip all cash.

From my understanding, it's best to form an LLC with S-corp tax election to save on some self employment tax for flips.

Section 1:

This is going to be a single member LLC. My question is can I have the LLC that is a disregarded entity for the flips that is owned by the LLC with the S-corp tax election as the single member which is owned by me? All of the income is passed through to the S-corp that would distributed dividend and salary to me? The single member LLC (disregarded entity) would be registered in the state of WA in which I plan to invest in and the LLC with the s-corp will be registered in Delaware and will be the single member. And since the Delaware LLC is a member of the WA LLC, I do not need to register the Delaware LLC with WA state as a foreign entity, is this correct? Is this arrangement possible? Is it too complicated for tax purpose?

Also, since both are LLC. How would it be written as the buyer? For example if the LLC has a person as member or manager it would be written out as: ABC LLC, by John Doe, member
And since both are LLC, how would I be writing this offer as?

Section 2:

For tax purpose: Say for example and for simple math, at the beginning of 2014, I buy 4 properties at $70k each. After rehabbing, closing costs, etc, I sell all 4 properties and I got cash back from escrow for $150k each. All 4 properties would total me $600k. I would reinvest to buy more properties and rehabbing them and all of the properties are not for sale yet. By the year end of 2014, I only have about 50k of cash left in the LLC. So for the year 2014, am I being taxed at what I have left in cash of 50k net or I'm being taxed for the 4 properties sold?

Please help out, thank you very much.

Thank you all for the warm welcome.

A meetup in Tacoma??? Awesome! I would love to join. Please let me know the time and place.

Hi, been lurking around BP for awhile and have learned a lot. I'm a Real Estate Broker and mainly buy and sell for investors within the Tacoma, WA area. I have rental properties but looking to buy and sell as an investor.

If I can be of any help and you have questions about the market within Washington State, especially Tacoma area, please ask away. I am more than happy to answer.