Purchasing realestate to flip/have several investors what is the best way to form corporation or partnership?

I have several investors that want to invest in residential real estate to remodel and then sell. I am looking for the best way to set up for a partnership or corporation to reduce taxes. How are capital gains handled for a corp? If we sell and reinvest is there still a capital gain? Is it capital gains or profit?

Public Comments

1. form a separate LLC for each property.
2. You gonna pay taxes this way or another. Why don't you start making money to see if you are capable of doing it before you spend money on formation of corporation that you might never need.
3. I would look into a series LLC
4. You should form and LLC for each property. Each LLC will file a rather extensive tax return at the end of every year and all partners will be listed there. There is a form called a K-1 that deals with income for partners and a good tax person can help you with tax implications for the partnership and each individual. There are capital gains on a sale if you buy it for one price, invest some money and sell it for more than you paid for it. But the investment cost of fix-up is a business expense for that property and will off-set some of the gains. Capital gains are one thing, profit is another. Profit is what you have after you deduct the costs of carrying the property and all renovation, and your purchase price, from the sales price. If you still have money left over, that's profit. My advice, no offense, is that if you're asking these questions and already have investors, you're probably a little over your head. Real estate investing is very complicated and expensive and has tax consequences. I don't think you understand enough about real estate 101 to be involved to this extent. You need a good education first, and make sure you learn about the 1031 exchange.
5. good question. depends on your state. but create it as a llc like the other person suggested.