TAXES Real Estate

CYA “Cover Your Assets” Tax for Real Estate Investors Meeting Notes

I don’t think anybody would expect an “asset protection and taxes for real estate seminar” to be exciting, but we had overwhelming response and interest in this topic from both investors and brokers.  Attendees were riveted for more than two hours with the incredibly useful information shared by Scott Estill, principal of the tax legal firm Estill & Long LLC in Denver CO.  Here is a short summary of some key points followed by a link to the complete presentation.  If you would like an email announcing the Advanced Real Estate Strategies for Taxes and Asset Protection seminar please use the Contact Us Page with the subject “TAX.”

• Keep Records or for at least 4 years AFTER you sell a property and keep tax returns forever
• IRS is currently targeting real estate professionals and real estate dealers and Sub-S Corps and exchanges for audits
• Reduce chances of audit by using entities (not sole proprietorship), filing accurate organized returns with no blanks
• Business expenses must be “ordinary and reasonable.”  Use the smell test.
• “Own nothing but control everything…”  -John D. Rockerfeller
• Taxation in S Corps are generally better for dealers and brokers for self employment tax reasons
• Limited Liability Company (LLC)  is the most flexible type of entity, may be taxed various ways based on election

Real Estate Tax Attorney Presentation Link

Thanks again to Scott or presenting this valuable and timely information to our members and clients.

Here is the link to the
Complete Tax and Asset Protection for Real Estate Presentation.  

Reminder and Warning:  this is proprietary information (owned by a law firm!) so please honor the intellectual property and copyright of Estill and Long LLC.

Unfortunately, even with more than 2 hours runtime, we did not have enough time to answer all the great questions, especially about real estate dealers and real estate professional tax issues.  Based on the overwhelming interest and number of questions raised at the last meeting of the Denver Real Estate Strategies for Investment Property, I hope to put together a more advanced class.  If you have interest in this topic please sign up for the Real Estate Investor Tools Tips and Resources newsletter on this site and I will send out the announcement.  The attorney’s were very generous with their time as a sponsor of the Private Market Group investor meeting , but fair warning the in-depth class may be a paid class.  Based on the “entry level” class, however, I think the amount of tax savings will be well worth a small about of tuition.

Here are some important tax related links for clients and other Denver Real Estate Investors:

• IRS Forms for Taxes
• Form to File Articles for new Real Estate LLC in Colorado
• Form to get an EIN number for your real estate LLC

Important Disclosure:  The Private Market Group at Your Castle Real Estate Inc, PMRE LLC and Paul Barrow as Real Estate Broker are not qualified to provide tax or legal advice.  The information provided on this website should not be relied upon for making decisions related to taxes or legal or any other company or personal decision.