Tax Strategies in 2008
I remember 5 years ago thinking that 2008 was going to be the best tax loophole ever. This was the year that you could sell your capital gains property and pay NO TAX or you could take a dividend distribution from your C Corporation and pay NO TAX.
How come nobody is talking about that now?
It’s still true that at the lowest income tax bracket that you will not pay any tax for portfolio income such as dividends and long-term capital gains. However, get much beyond on the lowest tax bracket and an old friend (Hah!) is going to suddenly jump up again. That’s the Alternative Minimum Tax (AMT).
Does the 2008 tax loophole still exist? Sort of. Congress’s inability to get a permanent solution to AMT means that all of us are hedging our bets with tax planning, especially as it relates to capital gains treatment.
It keeps me in business, without a doubt. But it also breeds a lot of uncertainty into the investment market and that’s not good for anyone.
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Hello Diane, I just heard the latest online workshop and had some questions. I have a situiation where my sisters is trying to get into a house. Her credit is not really that good. So i thought it would be a perfect opportunity for me to start my real estae investing. I was thinking of getting a house and renting it to her. She has already agreed to do this. I know that what ever type of property has to make economic sense even if she had to move for what ever reasons. But i want to also buy a home for myself. I dont want to have that loan on my personal credit report. I know that forming an llc to hold real estate is a good idea, but where do i start?Is it possible to have the loan in the LLC?
Hi Jon:
I moved your question over to the FCL Forum (because we may want to encourage some other comments as well) under the general question “Can an LLC get a loan in its own name?”
Ok, thats sounds like a good idea. I actually just read one of Megan’s articles ” Getting Real Estate Out of your name and into the LLC” and had a little more insight. I did not realize the separate issues pertaining to the” title” of the property vs the loans and the liability.
That’s why I love the idea of the forum. Sometimes we don’t know the right questions to ask and I worry about giving simple “yes” or “no”. With the forum, there’s more of a chance to fully explore the issues.
See you on the First Class Lounge Forum!