USA Business of Flipping Houses


Joined
Apr 17, 2015
Messages
2
Reaction score
0
Country
United States
Hello All,

I recently acquired a new client in their second year of the business of flipping properties. The first year 2014 they only sold one property, however this year 2015 they have 4 properties bought and are planning on renovating and having them sold by the end of the year.

As this is my first client in this field I have done my own research and would like some input on helping them with tax planning as they are worried about the tax implications of the expected profit of around $50,000-$100,000 per house.

I have thought to advise them to put 1-2 owners on payroll and also to include other managers as shareholders. (Currently there is only 1 shareholder and there are 3 individuals actively running the business - so 2 extra would be added as shareholders) This way, the profit will be broken down to each of the 3 shareholder and they will be taxed on the remaining profit at their own tax brackets, rather than one shareholder footing the tax expense.

Any other sound advice from tax experts here? Links to publications or articles on accounting and tax for flipping properties as a business will be appreciated as well.


Thank You!
 
Ad

Advertisements


Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments. After that, you can post your question and our members will help you out.

Ask a Question

Top