Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-16-2008, 11:16 PM
Junior Member
 
Join Date: Apr 2008
Posts: 1
Dilemma

Hi there,
Can you tell me please which option is better for a real estate investment for income: the LLC or the corporation? i want to buy a "rooming house", but I don't want to pay double tax on the income that is going to bring me.
Thank you.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-18-2008, 09:44 AM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
Generally speaking, I along with almost all the CPA's and Tax Experts would strongly recommend the LLC as the better choice of entity whenever a Real Estate Activity is concerned.

Clearly, you will avoid the double tax that is common with the C Corporation. In the case of the the LLC, you would choose it as a passive activity, so that all the pass thru income would not be subject to Self-Employment taxes.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.