Real Estate Investing 101 and Beyond

Wouldn't it be nice if you could ask a quick question, get input on a great idea that popped in your head or just make sure you aren't totally screwing something up without calling, leaving a voicemail or posting on some obscure forum hoping the person responding is some sort of authority on the subject? Well, if that question, idea or concern has anything to do with Land Trusts then you are in luck. I just created a Facebook group called Land Trusts For Investors to serve this purpose. I will moderate it for you guys and try to make sure the content posted by members stays accurate, up to date and  of course - legal. Anyone can join and post. The more comments, questions and ideas posted by you guys the more we will all benefit. I'm excited to see how this goes. Click HERE to join!

A few short weeks ago, the number one question from land trust clients was how to handle the filing of profits and losses for their properties held in land trusts- twas’ the season. At first, this would seem like a question requiring a long drawn out answer from a very sophisticated accountant; however, like most things simplified with the use of a land trust – it’s not. A land trust is a f ully revocable grantor trust, which is therefore considered a “pass-thru entity” or “disregarded entity ” under the Internal Revenue Code meaning all profits and/or losses pass through to the beneficiary . All the tax advantages of individual ownership may be retained when a land trust is properly used to hold title to real property. So…if you want profits and losses to pass through to your individual tax return make yourself the beneficiary; if C-Corporation tax consequences are desired, place the beneficial interest of the trust in a C-Corporation, etc. Simple.