Have a Tax Question? Ask a Tax Expert
Good evening. First, you don't want to own real estate income in a C Corporation because when you go to get the money out of the corporation, you get taxed on it a second time. Thus, you would want to put your property into either an S corporation or an LLC. This would give you limited liability, but the tax aspects simply flow through. The result is that you get the same income and deductions as if you owned it individually...so no different ... better or worse....tax effects, but limited liability.
I hope this has given you the guidance you were seeking. I wish you the best of luck!
If you have a follow-up question, please remember that there might be a delay between your follow up questions and my answers because I may be helping other clients or taking a break.
If I have adequately answered your question, even though the answer might not have been the one for which you hoped, I would appreciate it if you would please click the GREEN ACCEPT button so that I receive credit for my work; otherwise, though you have made a deposit, I do not receive credit.
If you need additional clarification on this question after clicking ACCEPT, please do not hesitate to click Reply and I will be happy to do what I can to help you further. Thanks for allowing me to be of service to you.
The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
Thanks for your reply, my major concern is, since rental income for comapny
(LLC) can claim business expense for more tax deduction, if for personal income,
it would not have such option and have a higher taxable amount.