Originally posted by crosswind_:
I truly hope that no one felt as if I were attacking anyone. All I was asking, was about keeping short term capital gains.
Thanks,
Crosswind,
Ian gave you the only answer he could. I like Ian own a business, a great deal of money crosses my books. I also do not care about, or pay short term capital gains.
Ian is most likely an S or C corporation, this structure would allow him to take many pre-tax benefits, all of which would lessen the profits of his company maybe even into the loss category.
My corporation usually loses money most years, however I receive a great monthly rent as the owner of the building, the lease is triple net to boot, and not to forget the business meetings in vacation like settings, health care, life insurance, a vehicle and all costs of running the vehicle.
Meals at nice restaurants, some of my clothes, etc.
Did I mention the $5000 I pay each of my children a year for working for my real estate company?
This year my daughter used her pay check to help with her college tuition, my son used his to pay part of his private school bill.
Just think if you could cover 100% of the expenses you now pay out of pocket with after tax dollars, how much money would you really need to make a year in salary?
Btw, In those years when we lose money, I get to write those losses off against my personal taxes to the tune of my ownership interest in the corporation.
My advice is to start a LLC as soon as possible, ask your accountant what form it should take for you particular need. Don't worry about short term gains, you won't have any.
I think you are thinking of wholesaling in your personal name, don't do it. Or if you must, consider that no one actually sends a 1099 after you leave the settlement table.
You will have to figure out what to do with that large check.
