It was referenced earlier in this thread from May, but if you choose to tax your LLC as a S-Corp, you’re only responsible for SE tax on the amount you pay yourself as salary on the books, so you won’t get double taxed very hard. The rest of your company profits are treated as dividends to you the owner (not you the employee), and are not subject…[Read more]

Thanks Michael! We have lots of properties close to home. Feel free to send me a message! Thanks!

Thanks Rod! It seams like a great strategy!

Keep it coming guys! Any other tax strategies?

Lets learn together!

I have one:

Apparently Sir Al Capone would never be punished for all the evil he did, if he paid his taxes. But the federal government couldn’t swallow the tax bill he owed. They apparently didn’t care much what he did, but they…[Read more]

I do a complete tax return in September every year. That is when I pay in more Quarterly Estimated tax. It is a discouraging thing to go thru but I don’t like the sticker shock in April. I also try to buy anything the business needs and maximize expenses. I am in the early planning stages of setting up an S Corp or a C Corp. If I am careful I may…[Read more]

TAXES, TAXES, TAXES!!!!! Lets open this topic again guys.

I am having nightmares about this and it is only September. Who want’s to slash his profits by up to 40 percent self employment taxes included on land deals?

You muscle trough and made finally some money in land deal, lets say $5000. Now if you’re in a high tax bracket, the uncle sam…[Read more]

Milan,

I like how you don’t over complicate this and always keep some in reserve for the great deals that may pop up. Smart! Appreciate you being willing to share this strategy here. Thanks

Luke will have much more valuable answer here. But I’ll chip in here Merritt. When I cannot decide if to go for a deal or not, I look how many properties are for sale in that county. The less property there is the higher price I’m willing to pay with some access issues and some partial flood zones let’s say, but still be the cheapest on sell side.…[Read more]