Selling One House A Year
I am current as an S Corp ,although I am considering retiring and would like to fix up and sell one house a year. Should I do this as an S corp or as a separate business ? My corp is related to the contruction industry but more consulting. Would one house a year be active enough to be considered a business?
Legal entities such as corporations and LLC's are used for asset protection most often in real estate investing. You definatly should be operating under an entity. I typically recommend an s-corp for flipping properties although you should definatly consult a tax advisor. An additional entity shouldn't cost more than a few hundred dollars to set up.
GOOD LUCK
Our problem in the great state of Calif. is that corporations cost $800 and that is a little heavy if your volume is reduced to one house a year. Perhaps you could specialize in really big houses and compensate in that manner. I tried this in my early dating years worked out well. I did reduce my capital expenditure and I finaly found one who would share the expense of a meal and a movie.
the paper bag she wore on intimate occasions was rather attractive.
But then as it must to all men, I increased my rate of dating and I reached a triple. That was my zenith. I kept the Reg. S throughout the entire time. Seemed to work for me.
Lucius
Don't know where IRS say anyplace that you must do X amount of biz with a corp. Your present corp should suffice. Read your articles of Incorporation again to make sure they say something to the effect, the corp can doing anything to generate revenue.
I had a publishing biz and then started doing a travel agency under the same corp, then expanded that into real estate.