Selecting LLC Taxation for Investment Real Estate

In this video, real estate asset protection attorney Clint Coons discusses when to elect disregarded, partnership, S-Corporation or C-Corporation tax status for …


11 thoughts on “Selecting LLC Taxation for Investment Real Estate

  1. In a holding/subsidiary(s) structure, and the subsidiary has elected disregarded status – no federal tax return is required for the subsidiary if I understand correctly. However does the subsidiary file a state return and subject to state taxes? Advanced question is if I reside in NC, holding is a WY LLC and the subsidiary is another state LLC where it owns the real estate (ex: IN) – will WY and IN require returns/state taxes?

  2. If one is a non US person but owns rental real estate in the US, I understand S Corps are not available. What do you think would be the best substitute incorporation type in this case? By the way, your videos are fantastic!

  3. Thanks for the great video Mr. Coons.
    I have watched several of your videos but haven't seen you mention "Qualified Joint Venture". I am in the process to purchase a commercial NNN lease property and would like your input on selecting LLC taxation.

    When you mention partnership, I often think about myself and a friend. However, I created an LLC with 2 members, my wife and I. Then I moved onto the step of creating an EIN, IRS has a taxable form as "Qualified Joint Venture". However, IRS has a restriction: "A Business Owned and Operated by the Spouses through a Limited Liability Company Does Not Qualify for the Election". Also, I might flip the property in 5-10 years, should I select partnership or S Corp? If those are not preferable, is there anything else you would recommend?

  4. Very interesting information. I live in Missouri. If I were to create a MO LLC with a WY or NV LLC as the single member and disregarded tax status on the MO LLC, how is the STATE tax handled? MO gives it the same tax treatment that is elected for Federal tax purposes. But the entity to whom the income would pass is the foreign LLC.

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