I recently sold all my properties and came across one I couldn't pass up to purchase in the process. Although the time to sell was good with the market, I will be paying the price at tax time taking the $ as income. I am in the highest tax bracket already so I will eat this one but, wondering what the best way to structure my next property and any future ones I purchase? Mine were personally owned by my wife and myself and the plan was to sell in retirement but as they were all multi-family and the market was up, we cashed out.
I'm purchasing the next one from my mom so I have time to figure out the best ownership structure moving forward. What is the best ownership structure moving forward to reduce any tax I have to take as income? Am i better to have a holding company for ownership, some sort of incorporated company? Is there a way to structure ownership with my kids (oldest is 13) so they can take the income at some point and I can transfer full ownership to them eventually without penalty? I think I might buy one more single family home and possibly a cottage to air b and b, or a multiple cottage type property. So all in all I would have 2 single family homes to rent and possibly one more cottage style. Is it worth owning them within a company for tax purposes?
I know this can create a lengthy discussion and probably depends on how long I plan on holding them (ideally until I die or need the $ from them in retirement). Hoping to retire in the next 3-5 years and not really interested in any more income at this time, I'm already paying my fair share of tax.
Any suggestions or advice greatly appreciated.
I'm purchasing the next one from my mom so I have time to figure out the best ownership structure moving forward. What is the best ownership structure moving forward to reduce any tax I have to take as income? Am i better to have a holding company for ownership, some sort of incorporated company? Is there a way to structure ownership with my kids (oldest is 13) so they can take the income at some point and I can transfer full ownership to them eventually without penalty? I think I might buy one more single family home and possibly a cottage to air b and b, or a multiple cottage type property. So all in all I would have 2 single family homes to rent and possibly one more cottage style. Is it worth owning them within a company for tax purposes?
I know this can create a lengthy discussion and probably depends on how long I plan on holding them (ideally until I die or need the $ from them in retirement). Hoping to retire in the next 3-5 years and not really interested in any more income at this time, I'm already paying my fair share of tax.
Any suggestions or advice greatly appreciated.