When to Use an LLP In short, I recommend never to use an LLLP. In all my years of experience as a professional tax attorney, I have never found reason to use an LLLP over other tax entities. LLLPs have been adopted in over 20 states as a unique asset protection tool. However, they come
Go into debt. That’s right…but “Good debt”. I want you to use good debt to buy rental real estate, start or expand your business, and build additional cash flow. You may even enter into debt for a modest home if you are renting. Many consider a modest auto loan or home loan profitable debt, IF it helps you make money by driving to a job and NOT paying rent to someone else.
Making these changes may be uncomfortable, but critical to survive. What do you have to lose? If your business is headed in the wrong direction, any change could make the difference!
Choosing the State in which to set-up your corporation or LLC is actually a very straightforward decision. Don’t let someone talk you into setting up your new entity in Nevada, Delaware, Wyoming or Utah…just to name a few.
If you have rental losses, you DO NOT want your enterprise to be considered QBI and included in the 199A Deduction calculation, BUT you (or your spouse) DO want to be considered a real estate professional in order to deduct the losses against your other ordinary income.
I recommend to ALL of our clients to purchase at least one rental property a year for tax planning and wealth building benefits.
Don’t underestimate the power of the S Corp. Consider getting a second opinion if anyone says an S Corp isn’t the best fit.
I’m often surprised how many taxpayers get fixated on being a Real Estate Professional as their primary tax-planning goal, while others avoid it like the plague. Yet, there are still others that don’t even know what the fuss is all about.
Now although there are reasons not to put your spouse on payroll, I would argue there are two (2) GOOD REASONS to put a spouse on payroll before year-end. Both of these strategies create great excellent tax deductions and good use of money
The S-Corporation can be a powerful structure and tool to save on self-employment taxes and can also protect a business owner’s personal assets from lawsuits that may arise from their operations.
Millions of Americans die each year without any type of estate plan in place, and this forces their families into the court system, where they experience huge expenses with probate and significant time delays when they would rather be mourning.
The CRT is a very powerful estate planning tool that may enable you to reduce your liability for income and estate taxes, protect your assets AND diversify your assets in a tax-advantaged manner.
