tax question - Posted by Frank

Posted by William Bronchick on October 15, 2003 at 07:50:25:

It shouldn’t per se… income in a C corp does not flow through to your tax return unless you tax salary or dividends. So, in theory, you could earn profits in your C corp and have losses from your rentals in an LLC flow through, showing a negative income.

However, the IRS may eventually make a stink if you earn income and never take salary. Also, if you have retained earning in excess of $250,000, there may be a penalty.

The best advice is to review your operations with a qualified CPA or tax advisor who knows real estate.

tax question - Posted by Frank

Posted by Frank on October 14, 2003 at 12:15:13:

Would selling on contract in a C corp affect tax write offs from an LLC holding rentals?