All Forum Posts by: Naomi T.

@Basit Siddiqi

Hi Basit,

I was planning to have one entity hold and manage the property. The other entity is my consulting practice (I'm the sole owner). My thinking was that if these two entities shared the same LLC, but had distinct DBAs, then my expenses with the real estate (land purchase, engineering consultants, architect and construction costs, etc.) might be offset somewhat by my consulting income.

I do plan to use the vacation home personally and rent it out. One thought that crossed my mind is whether I could actually rent the property from my LLC just like anyone else, but I'm unclear if this is acceptable practice...

Basically, I am wondering whether coupling my consulting practice and real estate venture under the same LLC (or corporation) would provide tax benefits. There will be substantial real estate expenses the first couple of years, which I hope would reduce the taxable income from my consulting practice...

Does anyone here have recommendations for a New York City based CPA or lawyer with experience structuring multiple businesses?  I am investing in out of state land where I plan to eventually build a vacation home with rental income potential.  I am also a self employed consultant.

I am trying to weigh my options as to whether I should use one LLC with DBAs, or two separate entities. I understand that having a devoted LLC for the land would be prudent, but I'm curious as to whether there would be tax advantages to keeping everything together as there will be substantial expenses going into the building of the home.

Any advice would be so appreciated.  

Hello, my name is Naomi.  I am new to posting but have enjoyed the community for some time.

I am considering purchasing an investment property (US land) where I will eventually build a vacation home that also generates rental income when I am not there.  I am self employed as a consultant.  I am wondering the most tax advantageous way to structure my entities (I would be the sole owner of each).

For example, the consultancy entity operates at a profit but the property investment entity will, at least at first, operate at a loss (construction expenses, etc.).  Is there a way to have this profit and loss offset each other, thereby minimizing the taxes?

I'm wondering if my consultancy should be set up as a C-Corp, thus taxed at the corporate rate, and I could then loan funds to the Investment Property (which I assume would be an LLC)... Is this feasible, or is there a better, simpler way to do this?

Naturally I intend to consult with a lawyer and CPA, but I want to have a better understanding of the pros and cons and prospective plan before sitting down for discussion.