Posted by surfdog on January 08, 2001 at 22:36:03:
Mark-If you buy as a business, you will pay social security taxes on your profits. At least for your first couple of deals, you can structure them as investments, not business profits. Take title to them in a trust format if you want the privacy of a corporation, ie: 123 Main St. Trust.
Buying as a Business - Posted by Mark Fischer
Posted by Mark Fischer on January 07, 2001 at 23:37:52:
When buying a investment property, is it to your benefit to buy it as a business or under your personal name. Meaning, would it be better to establish yourself as a business such as a Sole Proprietorship or Partnership and purchase the property under that business name? I would think there would be more tax benefits to owning the property as a business rather than in your personal name. What are your thoughts???
Re: Buying as a Business - Posted by Tim Conde
Posted by Tim Conde on January 09, 2001 at 12:56:11:
Properly, this should go in the other forum, but since you asked…
Of all the properties I own, maybe two are held in my name. Apart from the money aspects, there are huge legal implications. I also have partners involved in some properties, but not others, etc. When you have assets, you MUST do all you can to protect them. One way is through trusts, another is through corporations, and there are others, too. I once had a kid fall down a flight of stairs in a house I owned. Broke him up pretty good. Their lawyer was on the phone to the management company that night. Everybody from soup to nuts was sued. What did they get? A few thou of insurance money. My lawyer said that they (the other side) spent a lot of money trying to uncover my assets to sue me for millions but couldn’t do it. It was an intersting lesson and , luckily, not a costly one.
Tim