12 Feb What’s the Tax? by Lee Phillips
What’s the Tax. A great Question. Lee Phillips article below offers some key insights.
By Lee Phillips
Every time you change a property’s ownership, make a deal, or start a business, you need to ask, “What’s the tax?”
Real estate investors make huge mistakes when they transfer property into LLCs or other entities in the name of asset protection. In many cases, the IRS comes back not just to bite them, but to grab them by the jugular vein.
I had a lady come to me that had done a simple living revocable trust. The local banker and attorney had helped her “fund” the trust. The way they moved her assets into her trust triggered a $32,000 tax that was totally unnecessary. Many deals can be structured so you get twice the profit if you analyze the tax consequences.
Unfortunately, most people never question the tax until after the transaction. BIG mistake!! Check out my YouTube on “What’s the Tax?”
Lee Phillips, JD
US Supreme Court Counselor