Real estate is the most popular alternative asset The Entrust Group clients own in their Self-Directed IRAs. You have a lot of options when it comes to the type of account you can hold to invest in real estate, but today, we’ll discuss investing in real estate using Roth IRAs and show you the benefits, for both you and your beneficiaries.
Starting A Real Estate Investment LLCThere are mainly two reasons why you want any kind of business structure:
Pay less tax, and protect your assets. LLCs can be especially helpful if there are multiple owners of a property. When you create an LLC, you’ll create an operating agreement that outlines the rights and responsibilities of each member of the LLC.
This can help you seamlessly manage your rental property business and also protect each member of the LLC in case of legal trouble.
Before you jump into creating your LLCs for your real estate holdings, there are a few things to consider. Do NOT make these three mistakes while creating an LLC for your real estate investment company.
Given the new proposed United States tax plan from the Trump administration, investing in real estate has some potential implications for a new investor. Most consider the changes extremely beneficial to first-time real estate investors in particular.
To cover the basics first, the existing tax structure allows for real estate investors to write-off all the expenses of owning and running a rental as those properties are considered a business operation. In addition, any interest on the mortgages for these investments along with any repair or management costs can be deducted pre-tax on the total income of the property so that the property owner is only taxed on the actual cash flow they’re earning from the investment.
There is an entire political discussion around taxes: are they fair or unfair? Are you paying your fair share?
During the last election cycle, President Trump received a lot of attention when he said, “I pay no taxes.” But what most people don’t realize is that Trump is only doing exactly what the government wants him to do.
Congress NEEDS professional investors and entrepreneurs. They want to reward business owners because they know that by doing so they will create jobs, and housing. After all, that’s what creates a better economy.
Congress has approved sweeping tax cuts and tax reform that have not been tackled by the federal government in over 30 years (since the Tax Reform Act of 1986.). The new tax law, formally referred to as “The Tax Cuts and Jobs Act,” will go into effect on January 1, 2018.
This article has the most up-to-date information along with a summary of how the new tax law provisions will affect homeowners and real estate investors who own all types of investment property. Although this article generally does not delve into tax issues not associated with real estate, there are many new tax provisions and this is essential information for anyone that owns real estate to understand.
