How Does A Full Time RE Investor Pay Income Tax?
Say I take on REI full time in the form of owning multi-unit properties long term. My only form of income would be from the profits from rents. If I pay all my dues for each property owned (property taxes and all other bills) and have money for self as income how would I pay income tax on that?
I kind of already know the answer but just want to be sure as I currently have a full time 9-5 but would like to do REI full time in this form at some point.
Thanks
Noc
[ Edited by noc on Date 11/27/2006 ]
Quote:
On 2006-11-27 18:46, noc wrote:
Say I take on REI full time in the form of owning multi-unit properties long term. My only form of income would be from the profits from rents. If I pay all my dues for each property owned (property taxes and all other bills) and have money for self as income how would I pay income tax on that?
I kind of already know the answer but just want to be sure as I currently have a full time 9-5 but would like to do REI full time in this form at some point.
Thanks
Noc
<font size=-1>[ Edited by noc on Date 11/27/2006 ]</font>
You will probably want to form a corporation or LLC; for a list of Real Estate Deductions with LLC or Corporation, see www.instantinc.us Real Estate Investing Section - Tax Organizer
Thanks for the info.