I recently invested in a commercial real estate deal with some friends and was wondering if anyone over here could enlighten me on if I should create any of the following (LLC, Partnership, Trust, or something else). The purpose of me creating one of these would be for Tax benefits. My objective is when I receive distributions, I would like to avoid being taxed at the personal income level. The distributions received will be directly invested back into new deals that we invest in for the future.
Ex. Invest $100k in a property. As distributions come back to you and you make up that $100k you want to put that money back to work in another property. Without taking a tax hit every year on your personal income taxes knowing that you will be investing it all back into another real estate deal (basically an account to hold the money until you reinvest it).
Ex. Invest $100k in a property. As distributions come back to you and you make up that $100k you want to put that money back to work in another property. Without taking a tax hit every year on your personal income taxes knowing that you will be investing it all back into another real estate deal (basically an account to hold the money until you reinvest it).