Hello and good day to all that read this post…
I have read that a real estate investor can structure a land trust in a manner that the individual would not be designated as a dealer by the IRS, my inquiries are the following:
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Does the time duration that the property resides in the land trust determines the manner the IRS taxes your transaction?
For example, if I place a property in a land trust with the LLC being the beneficiary for a period of three months as opposed to 9 months, will placing the property in an Land Trust for such a short period of time exempt me from paying dealer taxes when I sell? -
Does proper legal wording play a role when placing a property in a land trust to avoid being label as a dealer when you finally decide to sell?
Note: Question 2 is posted due to the fact that I have been searching for a real estate lawyer that is familiar with land trust and a good percentage of these individuals are either: -
Not familiar with this concept
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Vaguely familiar with the dynamics of land trust
I endeavor to understand the proper legal terminology or structure of the land trust in order to present my investment parameters or legality requisites clearly to a real estate attorney that specializes in asset protection.
Note: The above mentioned statements are not intended to insult or degrade any real estate attorneys/investors that are members or view this site. If I have, my sincerest apologies.
Thanks again to all that review this post and successful investing to all.