Don’t Get Double Taxed on Your Real Estate Investing

grimA dilemma every real estate investor who buys and sells property for short term gain faces, is how to proceed if the property does not sell.  Most of my clients understand the importance of using a corporation for their short term investing to avoid the dreaded “dealer” classification.  This usually requires the utilization of a corporation to keep “dealer” type activity separate from long term “investor” activity.  When the short term quick flip property becomes a long term investment, what is the individual to do?  For most investors who own a corporation the answer seems simple enough – pull the property out of the corporation and contribute it to an LLC for asset protection.  However, this can create a serious problem if not properly structured. Click Here to read my recent Blog Post on Bigger Pockets on how you can avoid double taxes.

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