Expense Questions and Dealer Status Question - Posted by Jill

Real Estate Investing Real Estate Law
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Posted by JHyre in Ohio on July 02, 2002 at 09:47:39:

The most common question I get is choice of entity. The answer requires lots of info…I send a questionnaire that gives me a feel for the business, the owners’ finances, and the state(s) involved. The decision is generally tax-driven- and most lawyers do not understand taxes. Choose accordingly!

John Hyre

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Expense Questions and Dealer Status Question - Posted by Jill

Posted by Jill on June 30, 2002 at 21:02:22:

Can you use the following expenses with a single member LLC; section 179 expenses. Also, if you sell via a lease option or seller finance, do you have to claim the profit when you sell or acutally when you receive the money? Also, in order to eliminate the dealer status, do I need a LLC or a corp? What is some creative and legal ways to deal with capital gain for a LLC and a corp? Thanks for your time.

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Re: Expense Questions and Dealer Status Question - Posted by JHyre in Ohio

Posted by JHyre in Ohio on July 01, 2002 at 06:49:21:

Most of these questions do not have short or simple answers. Bear that in mind as I respond with short and simple text!

  1. Yes.
  2. L/O- usually have income when option is exercised, exceptions exist. Seller finance = tax when sold, installment sales method may apply.
  3. Entities do not eliminate dealer status, they do keep it from spreading to other non-dealer properties. Entity choice depends upon type of business, personal financial details and state of residence.
  4. That’s WAY to broad of a question to get a detailed answer on a free newgroup…1031 exchanges are a pretty standard way of dealing with cap gains…
  5. You’re welcome.

John Hyre

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Thanks For Your Time! My Accountant and Lawyer - Posted by Jill

Posted by Jill on July 01, 2002 at 18:53:38:

recommends a LLC; yet, after reading Bill’s courses on corporation and asset protection, I feel that a corporation would be better. I just needed to hear from another expert. I just feel that a corporation will allow me all the benefits whereas a LLC won’t.