All Forum Posts by: Jessica Parker

@Don Ireland as of right now we are considered a single member LLC which in the state of Washington, being married allows us to do that. So not sure if that is more beneficial than s-corp would be? Because, I think, if i understand it correctly.. we'd just be taxed as one person?

@Basit Siddiqi Thanks for the reply!  I'm still unsure what will be best for us, I'm leaning towards S-Corp status..but not sure how much we will generate our first year if it will be worth it or not!  Luckily with our current business we have a lot of write offs that help bring down our taxable income! 

@David M. Thank you so much!  That definitely helps and makes sense! 

At what income does an S-Corp make sense?  I'm debating if I should go ahead and file for S-corp status now or if I should hold off. I'm hoping once we start flipping we will be doing at least 2 our first year...then hopefully it will expand to more after we get our feet wet.  

@Michael Plaks Yes, Oh ok, I totally see what you are saying!   

Good to know all this!  I have so much to learn still! It can really be a bit overwhelming at times!  

I most definitely need to see if I can find a good real estate CPA!  Thanks so much for your advice! 

@Tiffany Watkins Thanks for the tips! We currently have a CPA but she is not well-versed in Real estate...so I will definitely need to find another CPA for our real estate dealings! When it's time to move, hopefully we will be able to get several places and then do the BRRRR Strategy to pull all of our money back out! Definitely not a bad idea to diversify a little bit though!

@Michael Plaks Darnit...I guess I was looking at it in a business stand-point with the houses being inventory like any other product.  Well that's a bummer, I had a feeling it was too good to be true! lol So when you say there are ways to mitigate your tax impact...Are you speaking about 1031 exchanges?  We are thinking about going the S-Corp tax status route to try and save us a bit of money there, with the not having to pay 100% of the self employment tax...

Hi fellow BP'ers! So My husband and I are at the very beginning stages of getting our investing career going! We just created an LLC to flip and wholesale out of. We don't need any of the money we will be making from wholesaling or flipping as our current business provides more than enough income to live off of. So we plan on reinvesting everything!

If we re-invest all profits that we make from flipping and wholesaling, will we have zero tax liability for that portion of income at the end of the year? 

We have a plan on moving to the South here in the next couple years...so would we then be able to take whatever our capital is up to at that point and put it all into buying properties in cash or use the money as down-payments on multiple properties and completely avoid any tax?    We would then plan on Refinancing properties to pull our money back out after we rehab them.  I'm just wondering, is this a good tax strategy?  Will we in essence be able to avoid all taxes on that income doing this? 

@Wayne Tanner That's great!  Look forward to meeting you too! :) 

@Tanner Maahs for sure! Hopefully you are able to make the meetup November 7th! :)

@Tanner Maahs you aren't able to see the meeting info? Should be at the top of the page! But just in case, it'll be at playmakers, Saturday, November 7th @7pm! We have the private room that is separate from the rest of the bar! The door to the right of the main entrance! :) look forward to meeting you!