- Taxes will be the biggest expense you will pay in your business and personal life.
- Taxes will prevent you from taking more money home and putting it into your bank account.
- Taxes will eat away at your wealth.
One of the best ways to reduce your taxes is to be in business.
Investing in real estate is not the same as “being in business.”
When you invest in real estate, you can take certain deductions, like depreciation, and there are certain other tax benefits, but if you want to take the most deductions allowed by law — almost 150 of them — you need a small business corporation.
And there are many more deductions available with a C-Corporation than with an S-Corporation or LLC.
So if you’re a real estate investor, you need a “business.” It could be:
- A property management corporation, or
- A property finding corporation, or
- A property marketing corporation, or
- A (fix and flip) contractor corporation
So start thinking about how you can reduce your taxes by “being in business” so you can take the maximum deductions and put more money in your pocket.