Wow! Free Money! And not just for investment bankers! The government has decided to give most real estate investors a break on their taxes. For those businesses using pass through organizations (LLC’s, Partnerships, S Corps, etc.) the first 20% of income is TAX FREE!! Wahoo. If you have a C Corporation, your tax rate drops from a max of35% to 21%. YOU GET TO KEEP MORE OF YOUR MONEY! .
However, that only goes for flippers and realtors. If you are a landlord, you may or may not get the break. The IRS is not giving clear guidance. And if you are a lender (please, tears here for those of us in the humble real estate lending business), no soup for you. Interest income is still fully taxable.