Foreclosure Llc
When buying properties from an foreclosure auction, is it better (tax advantage and safer) to form an LLC?
I want to pickup some auction properties for flipping them over, however i want to know if forming an LLC or not would be the best way to go about this.. in terms of tax advantage and liability (if there even would be a concern since im not renting it out)
It is probably a waste of $1,000 for you to form an LLC. Just own the house and sell it when you are ready to flip.
You have to pay capital gains tax to the IRS. There is not much else to worry about. Protect yourself by selling the house “as is” as long as you understand that “as is” does not protect you from charges of fraud. Don’t promise that the AC will last for 10 years unless you personally installed it.
part 2 – Obama Mortgage Plan Foreclosure help – Saxon Mortgage – Bierman, Geesing & Ward, LLC
