The taxable event here will be when you sell the Condo's.
Unless you do enough of this to be considered a dealer by IRS, this will be a capital gain.
Assets held less than a year will not qualify for long term capital gains, but would be taxed at your marginal rate (added to your other income for the tax
year and taxed at that highest rate).
If you hold for a year or longer, you will get the long term capital gains rates... as follows:
0% applies to long-term gains and dividend income if a person is in the 10% and 15% tax brackets,
15% applies to long-term gains and dividend income if a person is in the 25%, 28%, 33%, or 35% tax brackets, and
20% applies to long-term gains and dividend income if a person is in the 39.6% tax bracket.
Plus the additional 3,8% medicare
tax on the investment income for those having a modified income of 30,000 for those filing single and 50,000 for joint filers.
IN terms of you ownership questions, because both S-Corps and LLCs are pass throughs, (taxed to the individual, rather than to the business) TAX-WISE there will be little difference.
The reason to do an LLC or as S-Corp would be for liability protection. Business creditors, lawsuits, etc will not be able to come after your personal assets or income if this entities are set up and maintained correctly.
If you use a C-Corp (which IS taxed at the entity level) you lose the benefit of the capitals gains treatment, because everything will be taxed to that corporation as corporate income AND then you'll be taxed on any profits coming from the C-Corp again (the double taxation
you've probably heard about) as dividends
Hope this helps
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