Like Kind Exchange (IRS 1031) for LLC rehabber - Posted by Scott (ATL)
Posted by Scott (ATL) on May 04, 2000 at 17:33:48:
Are other rehabbers using Like Kind Exchanges for your properties?
Since we have sold our first home (Held for 3 months) and didn’t do a “Like Kind Exchange” we may have to pay higher taxes than if we had put the money into the next home. Anyway, that is water under the bridge right now but are other rehabbers finding this to be useful for doing sfh rehabs?
I was under the assumption that at the end of the year we could take our cash after expenses and put it into a new home thus showing essentially a zero net profit. I have just been advised this might not be the case. If we buy,fix,sell 2-4 more houses this year each gain will be taxed separately. I was assuming that if all these homes were purchased under the company that only our net profits at the end of the year would be taxed.
Anyway, I have to have more discussions with my accountant but I am interested in hearing how others here are handling flipping multiple homes under a company umbrella.
Old Atlanta Renovators