Structuring real estate for tax purposesQuestion What is the best ownership structure for real estate investments?
Answer Generally speaking, an LLC (limited liability company) serves many investors very well, because tax losses or income "pass-through" to the owners who are "members" of the LLC. And like shareholders in a corporation, the personal estates of LLC members are protected from liability claims against the property or its operation.
The structure that would most benefit you depends on many factors, such as age, net worth, marital status, citizenship, ability to earn income, income-momentum, types of existing assets, and so on. Be sure to discuss your question with your tax strategist and CPA.
Brain Trust contributor:
Author of Real Estate Riches: How to Become Rich Using Your Banker's Money
Related Categories: Accounting, Finance, Taxes, Real Estate
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