REI- Investment Or Business?

Comments(8)

• 
  clofthouse12th June, 2006

  I too would also like know the difference.
  
  I have yet to find a CPA I trust and have loads of ??? about LLC etc and transfer of investment rental property title to LLC and taxes as partnership versus S corp etc etc. I am in Florida.

• 
  NewKidInTown312th June, 2006

  Quote:Curious about your thoughts on the quote below
  
  From CPA:
  
  "Something that is very important that you need to understand is that "real estate investing" for most people is not a "business." It is an "investment." There are some important differences between a business and an investment as far as tax treatment is concerned. "
  
  I agree completely.

• 
  mtnwizard14th June, 2006

  Keep it simple -- go with Mary Kay.
  
  Da Wiz
  not a lawyer

• 
  fdi14th June, 2006

  I can see the advertisement now, 3 bed/1.5 baths and a facial - $750/month or $720 with a purchase of $100 or more of Mary Kay.
  
  Gotta Love it

• 
  finniganps15th June, 2006

  In the end, I think that their are few businesses that really benefit from the home office deduction and it is difficult to qualify for most businesses (a notable exception is a day care in your home - generous rules).

• 
  deblica27th August, 2006

  I was advised by my CPA a few years back that in order to consider my RE investing a business that I would need a business licence. I file a schedule C for my rental properties at tax time. Hope this helps.

• 
  ryand28th August, 2006

  thanks a lot for your response, i do own a couple of multi fams right now and i have for a couple of years so i know all about screening people and the "hassle" of it. when i buy more i will have a property manager i think...overall, do you think this is one of the best ways to save in taxes? and a way to "hide" money
  
  thanks,
  
  Ryan

• 
  ryand28th August, 2006

  [ Edited by ryand on Date 08/28/2006 ]