I being new to this business do not know how to file my taxes or what forms i have rehabed 5 houses and put over 9,000 in each but have not filed a return please give me advice
thanks chris i will consult a tax pro or an accountant had partners in these deals who got paid but it was under my llc which they were not members so how do i include their share new and stupid thats what i was.
Well, you paid them for something- for their work or consulting or as a cost of borrowing the money you needed. Send them a Form 1099 for what you paid them and it becomes their problem.
An S Corp will save you the 15.3 percent self-employment income on a good portion of your profits. You will have to pay it on your salary, though (by deducting 7.65 percent in social security and matching it as the employer--but you can write-off your employer portion effectively cutting it in half). Ideally, you would use an LLC for holding and a Corporation for flipping ("Dealer" property).
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A lot more information is required. Did you hold the properties as rentals, or rehab and immediately sell? How long did you have the properties?
flips
rehabs and selling them
keep you nose clean with the IRS and State taxing agencies.
I would suggest you find tax professional in your area that is familiar w/ real estate investing and get it all cleaned up.
thanks i want to clean every thing up i just donnt no how
thanks chris i will consult a tax pro or an accountant had partners in these deals who got paid but it was under my llc which they were not members so how do i include their share new and stupid thats what i was.
Well, you paid them for something- for their work or consulting or as a cost of borrowing the money you needed. Send them a Form 1099 for what you paid them and it becomes their problem.
Chris
An S Corp will save you the 15.3 percent self-employment income on a good portion of your profits. You will have to pay it on your salary, though (by deducting 7.65 percent in social security and matching it as the employer--but you can write-off your employer portion effectively cutting it in half). Ideally, you would use an LLC for holding and a Corporation for flipping ("Dealer" property).
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