Unelected S Corp status

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Unelected S Corp status (by NE [PA]) Jun 3, 2025 5:55 PM

Unelected S Corp status (by 6x6 [TN]) Jun 3, 2025 6:09 PM

Unelected S Corp status (by NE [PA]) Jun 3, 2025 6:26 PM

Unelected S Corp status (by WMH [NC]) Jun 3, 2025 7:46 PM

Unelected S Corp status (by WMH [NC]) Jun 3, 2025 7:53 PM

Unelected S Corp status (by Ken [NY]) Jun 3, 2025 8:40 PM

Unelected S Corp status (by GKARL [PA]) Jun 3, 2025 9:09 PM

Unelected S Corp status (by mapleaf18 [NY]) Jun 3, 2025 9:26 PM

Unelected S Corp status (by 6x6 [TN]) Jun 3, 2025 9:27 PM

Unelected S Corp status (by NE [PA]) Jun 3, 2025 9:39 PM

Unelected S Corp status (by GKARL [PA]) Jun 3, 2025 10:29 PM

Unelected S Corp status (by RB [TN]) Jun 4, 2025 7:51 AM

Unelected S Corp status (by Ray-N-Pa [PA]) Jun 9, 2025 6:38 AM

Unelected S Corp status (by zero [IN]) Jun 10, 2025 7:28 AM

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Unelected S Corp status (by NE [PA]) Posted on: Jun 3, 2025 5:55 PM
Message:

For the first time in pushing 20 years, I am unelecting S Corp. status on the LLC that I use for flipping houses. I cannot find any inventory to do. Crazy. If I finish out the year without any houses for it, I will probably just close it. --174.240.xxx.xxx

Unelected S Corp status (by 6x6 [TN]) Posted on: Jun 3, 2025 6:09 PM
Message:

I don't have a clue what you just said but I will follow to learn. --73.19.xxx.xx

Unelected S Corp status (by NE [PA]) Posted on: Jun 3, 2025 6:26 PM
Message:

Hopefully GKarl can fill you in better than I can. --174.240.xxx.xxx

Unelected S Corp status (by WMH [NC]) Posted on: Jun 3, 2025 7:46 PM
Message:

NE, we at the the top of a housing mountain and about to fall down the other side. There will be inventory soon. --173.28.xx.xxx

Unelected S Corp status (by WMH [NC]) Posted on: Jun 3, 2025 7:53 PM
Message:

I've been through several housing crashes in my life, either directly or indirectly. I remember when Houston crashed - people mailing their keys to the bank and driving away. I remember writing a check to sell a house once in the late 90's. We all remember 2008.

Something like that is going to happen again very soon.

I doomscroll too much. --173.28.xx.xxx

Unelected S Corp status (by Ken [NY]) Posted on: Jun 3, 2025 8:40 PM
Message:

I agree with WMH- only a matter of time and there will be plenty of deals. --38.248.xx.xxx

Unelected S Corp status (by GKARL [PA]) Posted on: Jun 3, 2025 9:09 PM
Message:

WMH, I keep reading the argument that the east is still hot and while places like Florida are going under. My area is still seeing an influx of people from more expensive areas who are attracted to this area. That may hold for a minute It's still hard to fill places and that's the canary in the coal mine IMO. People are in a state of price exhaustion IMO.

NE, unlike some states, it practically costs nothing in PA to maintain an inactive LLC. I'd probably just keep it and the S election intact.

6x6, flippers often elect to have their LLCs treated as S corporations to minimize certain taxes related to flipping activity. Unlike a rental activity, flipping is considered an activity that produces income subject to FICA taxes which are in addition to the income taxes. Flippers use the S election to reduce these sorts of taxes. --23.28.xx.xx

Unelected S Corp status (by mapleaf18 [NY]) Posted on: Jun 3, 2025 9:26 PM
Message:

Only downside to having an LLC is that you need to use an attorney in court. You can't go pro se. --64.246.xxx.xx

Unelected S Corp status (by 6x6 [TN]) Posted on: Jun 3, 2025 9:27 PM
Message:

Thank you, GKARL. --73.19.xxx.xx

Unelected S Corp status (by NE [PA]) Posted on: Jun 3, 2025 9:39 PM
Message:

Mapleleaf, Not here you don’t. Maybe in higher courts. --24.152.xxx.xx

Unelected S Corp status (by GKARL [PA]) Posted on: Jun 3, 2025 10:29 PM
Message:

If we encounter a severe reversal, I think not only will there be a lot of deals but it will be like that for an extended period of the time like 10 years or more so you really won't have to rush. A lot of people are going to sour on real estate investments and bum rush the exits. When the cheerleading stops and the gurus disappear will be the signal to put your toe into the water --23.28.xx.xx

Unelected S Corp status (by RB [TN]) Posted on: Jun 4, 2025 7:51 AM
Message:

Dusting off the Crystal Ball. --204.10.xxx.xx

Unelected S Corp status (by Ray-N-Pa [PA]) Posted on: Jun 9, 2025 6:38 AM
Message:

A couple of thoughts

GKarl - I was taught that the audit rate on S Corps is twice as high as a LLP or a partnership. What are you finding?

NE - why not place each house into its own trust and instead of doing the S election within an LLC, keep them on a schedule E. Then as you complete the flips, you are opening yourself to additional profit centers if the market does change.

NE again - If you are having a hard time finding properties to flip, and I hear you, these are not as easy to find as they once were......maybe you can buy bed bug houses. If you do absolutely to kill bedbugs, but you get rid of food, they will die. I have read that magic number is six weeks, so wait ninety days maybe. Instead of a flip, make the numbers work for roll instead. --67.140.xx.xxx

Unelected S Corp status (by zero [IN]) Posted on: Jun 10, 2025 7:28 AM
Message:

Thanks Ray, now my head is itching again. --107.147.xx.xx

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