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Author Topic: How to avoid having properties under your name  (Read 3683 times)

Offline Omico

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How to avoid having properties under your name
« on: August 16, 2008, 12:12:16 am »
Hello,

Does the properties show up under your name with the IRS when assigning contracts and double closing in Real Estate Wholesale?  I don't want the properties I wholesale or assign to end up in my name at the end of the year and be in trouble with the IRS. Someone please explain.  Thanks!


Yia
Yia

Offline richfitz

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Re: How to avoid having properties under your name
« Reply #1 on: August 17, 2008, 10:23:39 pm »
Hi, from what I know.  if you are doing business as (dba) your own name; a sole proprietorship and not doing business as an LLC. you will have those profits to be claimed by the irs at the end of the year.  What i reccomend for you to do is set up an s-corp or an llc and do every transaction under the company name.  it takes alot of liability away and protects your name and social.

Offline Omico

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Re: How to avoid having properties under your name
« Reply #2 on: August 18, 2008, 11:47:15 pm »
Thank you richfitz!  I will look into that.   After doing a few deals, what are the chances of me(or any other wholesalers) be marked as a flipper?  I heard other gurus spoke of avoid being marked as a flipper.

Yia
Yia

Offline DemosL

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Re: How to avoid having properties under your name
« Reply #3 on: August 19, 2008, 02:51:20 pm »
Don't let the term flipper bother you. If someone asks what you do, you can say you're an real estate investor.
http://quickcash-nova.com
I am a wholesale real estate investor in Northern Virginia. I do local and virtual deals.

Offline BLL

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Re: How to avoid having properties under your name
« Reply #4 on: August 19, 2008, 05:26:18 pm »
Does the properties show up under your name with the IRS when assigning contracts and double closing in Real Estate Wholesale?  I don't want the properties I wholesale or assign to end up in my name at the end of the year and be in trouble with the IRS. Someone please explain.  Thanks!
The income must be reported either on your return or a corporations. Using an entity doesn't change that. You won't get into trouble if you report all your income and use legitimate deductions. Speak with a CPA or enrolled agent that has experience with real estate investors.

Offline Omico

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Re: How to avoid having properties under your name
« Reply #5 on: August 19, 2008, 09:35:32 pm »
Thank you all for clearing things up.  I appreciate you all!



Yia
Yia

 




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