All Forum Posts by: Maugno M.

@Linda Weygant Yeah at first he said doing a Scorp would only benefit me if i was making over 300k in profits... and then changed it to 128k because of the social security thing.  With the scorp i have to pay myself every how often ?

@James Miller @Ashish Acharya @Lawrence Stepovich

I just had a consultation with a CPA. I just created two entities, one for my flipping side and one for my rental side. My cpa just told me that if i put my rentals into the llc i created, either way i'd be paying SE tax. Something about using depreciation so either way it comes out neutral. I didnt really understand that part. I always thought that my rentals were passive and wouldnt be charged SE. CPA thinks otherwise.

He told me not do to the scorp till my profits were over 128k or so cause then thats where id be maximizing tax benefits.

So for now, he said i'd do the LLC as a disregarded entitiy, and that all my profits from llc flow to my 1040. he said that each of my LLC's would have to be on schedule c, my flipping llc and my rental llc

Feedback ?

Thank you all for all the feedback.  i appreciate it, i ended up setting it up as just two separate entities, wife and I members. Confirming it all today, names check out, etc. 

@Costin I. I understand this, but just wanted some insight, or different point of views from other's that do RE. It can get complicated, and i want to be ready, now and in the future. Great info i appreciate it, are you saying a total of three LLC'S?

@Costin I. I understand this, but just wanted some insight, or different point of views from other's that do RE. It can get complicated, and i want to be ready, now and in the future. Great info i appreciate it, are you saying a total of three LLC'S?

@Greg H. Yes ,I believe your going the same way im going on this too. Or atleast the same brain thoughts on this. Logic, atleast to me. 

@James Miller Thank you for the insight. I'm setting up my LLC,LLC,S. I want to have an understanding or more of it ,to be asking the right questions. And to overall know what im doing. Most likely either way my wife will be in it, she wants to be.....

@Greg H. But what about ownership ? Since i started this flipping thing before marriage,(money invested is mine) shouldnt i be the sole owner ? Or since i am starting the LLC now that i am married, without her on it, she'll still be entitled to what the LLC owns ?

@Dennis Dahlberg We'll have to see then how much she gets... that'll be fun