All Forum Posts by: Richard Sherman

I can only do that once I'm laid off. I would like to get laid off to work full time on properties but I don't want to lose my severance package, so I can't quit or get fired.. I may incorporate after I get laid off. However, there are problems with incorporating. As a private person owning property, in the State of Florida, I do not need a contractors license to work on my homes as long as I pull permits where applicable. Once the home is owned by my corporation, I can't legally pull permits anymote. I would need a licensed contractor and that would get too expensive. I do 99% of all work myself. What I may end up doing is to buy the property as a private person, remodel it and then quit claim it to the LLC and rent it via the LLC.

 I can't incorporate due to my day job.. I work for a major financial institution which also has many foreclosures and any outside business has to be approved by them. If they find out without getting approval, I will get fired and would lose a 6 figure severance package..

 I have been a landlord for years and was actually thinking of doing the Home flipping/landlord thing full time as I created a big enough capital base so that I don't need my job...  However, once I stop working my regular job, I will have to pay almost 40% in taxes on rental income due to the changes in Tax reform to make rental income subject to Self Employment taxes. If my tax rate is 25%, my rental income will now be taxed at 40%.. I don't want to give almost half to Uncle Sam.. If I flip it's either 20 - 25% (my regular tax rate) or 15% for long term capital gains if I hold the house over a year.. I refuse to pay over 25% on anything.. My tax rate is low as I have 2 little kids and my wife does not work... If I was single I would be in a much higher tax bracket..