Posted by Stacy (AZ) on December 01, 1998 at 10:15:48:
Read Bill Bronchick’s “Maximizing Profit” how-to article. C corp is best for flips.
Stacy
Posted by Stacy (AZ) on December 01, 1998 at 10:15:48:
Read Bill Bronchick’s “Maximizing Profit” how-to article. C corp is best for flips.
Stacy
C vs S Corp - Posted by Sheik
Posted by Sheik on December 01, 1998 at 09:43:10:
Which is the best way to go for flipping/Rehabbing???
Would appreciate some pros and cons.
Thanks
Sheik
Re: C vs S Corp - Posted by Bronchick
Posted by Bronchick on December 01, 1998 at 10:17:37:
C vs. S corp is a tax election that depends on your personal tax situation. Generally speaking, I prefer C corp, because the profits do not flow through to your personal tax return. If they did, you would either pay cap gains rates (15-20%) or, if short term deals, 28% or more. In a c-corp, the first $50K of net profit is taxed at 15%. Thus, if you report a “flip” as ordinary income earned to the corp, your effective tax rate is lower than if you reported it through an S corp on your tax return.
Of course, this presumes you are making a profit and otherwise have other income on your personal tax return. It is best to review your personal situation with a CPA or other tax advisor.