Apartments for Cheap

Questions and Answers

Your Questions About Houses For Rent

June 23, 2012

Charles asks…

I have three rent houses but i still have to work a regular job . My question is can i start a small Business?

for my rentals even if i have hired a manger to take care of them and collect rent . with a small business or home office i want to be able to deduct health insurance for my family and anything else i can legally deduct .

Administrator answers:

You can totally start your own business, but tax wise it might not be in your best interest. Consult your CPA or Tax professional regarding the specifics for your home state. There are many tax benefits on both sides of the fence between holding real estate personally, LLC’s, and Corporations. However, if you just want to create a simple management company that should be alright. If you form a standard C- Corporation health care is 100% deductible that wont be recorded as income, but rather an expense. In California (my home state) LLC’s and S- Corporations aren’t allowed to deduct health care cost because these entities have a flow-through income stream and income is recorded personally not separately as seen with a C- Corporation. The cost of forming a corporation, time, and any fees could out weigh the benefit of deducting the health insurance, but its always worth checking. Consult your CPA and hopefully the cost wont outweigh the benefit.

This book might help you: The Real Estate Investor’s Guide to Corporations, LLCs, and Asset Protection Entities ISBN: 1427797021

Mark asks…

Whats the best website for rent Houses from private landlords?

Whats the best website for rent Houses from private landlords?

Administrator answers:

Try Good luck

Powered by Yahoo! Answers