Real estate broker Mark Kohler says flipping houses on your personal Schedule C costs you thousands in taxes. Move every flip into a separate LLC or S corp instead, with the entity owning the property and handling the title. You get better tax savings and asset protection.
I'm a real estate broker doing short term flips personally. Can I hire my S corp to run the project? To ultimately supercharge my solo 401k? If you're doing flips personally. So you're house hacking. You're doing whatever. I love it. I'm a huge fan. I do fix and flips. And you're doing this personally. You're putting it on a schedule C and you're getting killed. Tax wise. You don't hire your S corp, you just quit doing it. You set up an LLC taxed as an S or you do an inc taxed as an S and you start moving the operations over here. So now you're doing all the flips in the S corp. You don't hire the S corp to do it. You're going to get asset protection here too. You want the corp to do the flips. So stop the insanity. No more doing flips. Let the S corp do the flips. You don't hire your S corp. You say, I'm not doing this anymore. I got a new entity. The entity doesn't. Now, if you're like, well, I got mortgage lending, I've got hard money loans and all that. I get it. You don't think this is my first rodeo. You're going to learn to do the entire deal in the S corp on title and whatever it takes. I teach classes on this. We've got podcasts, we've got 14 lawyers that can meet with you to do this. And trust me, you're going to save more money, get better asset protection. You just kind of don't know what you don't know. So get a consult and I promise you it'll save you thousands and thousands of dollars.
The secret to managing your family's future #financialfreedom #estateplanning #shorts
Moving Property to an LLC: What They Don't Tell You #realestate #investing #tips
