Is there anyway to tax deffer profits from wholesale or birddog strategies? I’m currently weighing the pros/cons of different ways to flip houses. Thanks!
Yes, if you buy and wholesale with a self-directed IRA you can defer tax until you retire. If you use a ROTH IRA, you can tax defer forever. Most people don’t do this because they want the profit now, but it’s a great strategy to use for some of your deals.
You can also differ some taxes by buying your properties within an S-corp, then paying yourself a “reasonable” wage, and taking out the rest of the profits as dividend which are not subject to self employment tax. You can also spread the income to other family members who are shareholders, Like you children if you have any, they are often taxed at a much lower rate than you would be.