Question by mrflip: Would a c-corp work for someone “flipping houses” for tax benefits?
I am looking into the business of flipping houses, so after reading more into it I see that it is recommended to operate under a “c-corp”. After talking to a CPA they said it would make no sense as I would be double taxed, both on the corporate profit and my personal income from the corporation. Why is it that most real estate books recommend c-corps then for tax breaks on buying and selling houses?

Best answer:

Answer by bostonianinmo
Probably because most real estate books are not written by tax experts. Sadly, few of them are written by real estate experts either, but that’s another story.

You’ll pay higher tax rates in a C-Corp, plus there are no personal exemptions or deductions so the first dollar of profit is taxed. You will have to pay yourself a reasonable wage but any other funds you take out as dividends are taxed twice, once as income of the corp and again as taxable dividends to you.

What do you think? Answer below!

You’re about to Learn the Sneaky but Simple Methods Needed To Uncover The Most Profitable Hidden Properties That Generate Wholesale Ca$h….all day!

Be prepared to have your phone ringing like crazy with motivated sellers of vacant, distressed and abandoned properties. Turn Trash Into Serious Cash! Dominate Your Competition with these closely guarded tools that Really will give you the edge you NEED in Today’s Real Estate Market.

Competition-Crushing Secrets of The World’s Most Successful Real Estate Investors!  Create a Constant Stream of Motivated Sellers and Hungry Buyers”

GET IT NOW!

Once you’ve determined your real estate goals-
Identify what is standing in the way of achieving your real estate goals, fix it and get to the business of helping others and making money at it.

Principle No.1:

You rarely have a money problem. You have an
attitude problem. The real estate go- getter with the right
attitude cannot be denied.

Principle No.2:

Face your fear. You always find the best fishing
holes in the places where the average fisherman
is afraid to go.

Principle No.3:

Watch the crowd. Go in the opposite direction to find a niche.

Principle No.4:

Until you know value, everything is worthless.
As soon as you know value, everything is
valuable.

Principle No.5:

Almost all opportunities are disguised as
problems.Including the current real estate market.

Principle No.6:

He who lives the Golden Rule gets the gold here
too. Get to digging….

Principle No.7:

Money is attracted to great ideas. Find your unique niche.

Principle No.8:

You are your success. The money that flows to
you is just a by-product of your non-financial
resources.Your ideas, your service to others, etc.

Principle No.9:

There is no failure. Only feedback. Learn from it and keep it moving.

Principle No.10:

A network saves legwork.

Principle No.11:

Routine brings results. A disorganized genius is
no match for the average person with a daily
routine. Develop a routine and stick to it.

*******************************************

This guy was on the brink of disaster.

At one point, he was one of the most successful investors in the country but he almost lost everything in Florida’s real estate crash.
Back to the wall, he was desperately searching for answers.
It was at that time that he stumbled upon a secret world of real estate wealth controlled by an inner circle of big pocketed players that is available to all of us.
No money, no credit, and not willing to take failure as an option he soldiered on and cracked the code to creating a fortune in today’s real estate market dominating an industry previously controlled by the world’s money masters.
His first deal saved his life.

Read More about Ken’s Amazing Journey Back and Learn how it can work for you too