I am the 100% owner of an LLC that owns and operates several websites. The LLC is setup as a passthrough entity, and has fairly large profits each year which are reported on my personal schedule C as business profit.
I'm interested in buying some investment properties. Instead of taking the profits from my LLC, paying taxes on them, then buying the properties with what's left, is there a legal way to have the LLC buy and hold the properties, making the purchase price a business expense which would lower my LLC's overall taxable income?
What I'm considering is turning "John's Internet Company, LLC" into "John's Internet and Real Estate Investment Company, LLC." Then, the profits from the websites would be used to purchase, operate, and maintain the properties. Is this advisable? Legal?
I'm interested in buying some investment properties. Instead of taking the profits from my LLC, paying taxes on them, then buying the properties with what's left, is there a legal way to have the LLC buy and hold the properties, making the purchase price a business expense which would lower my LLC's overall taxable income?
What I'm considering is turning "John's Internet Company, LLC" into "John's Internet and Real Estate Investment Company, LLC." Then, the profits from the websites would be used to purchase, operate, and maintain the properties. Is this advisable? Legal?
Dislike ads? Remove them and support the forum:
Subscribe to Fastlane Insiders.