Buying Real Estate In The Name Of LLC
Hello,
I am thinking of buying a Condo Unit(Pre-construction) in South Florida for a purpose of selling or flipping it at the end of construction. I heard that if I form an LLC and buy it in the LLC name
I can substantially reduce my capita gains taxes versus if I had bought it in my name.
Is that true and if yes what would be the difference in taxes rate longterm vs short term holding
period.
Thank you.
David.
No, as stated it is not true. An LLC is a pass-through entity. Whatever profits you make will pass-through to your personal tax return where they will be taxed at exactly the same rate as if the LLC did not exist.
Thank you. I will buy in my name and save on LLC set up fees.