Co-Invest Tax Structures

Are there any effective tax structuring tips for co-investing in real estate deals that are better than others? This would be a deal by deal co-invest vs. a fund. I'm assuming the best way to go is setting up an LLC and co-investing through that, but wondering if there is anything else that I should be considering? I'm already getting a base salary, so I wouldn't likely be able to deduct work expenses through the LLC since I can already get reimbursement on that from the company.

 
Most Helpful

An LLC isn’t a tax structure. You could elect to be taxed as a c-Corp, an s-Corp, or a sole proprietor.

S Coro and sole proprietor are pass thru e titles where you are not taxed at the corporate level, but only on a personal level, although you pay self employment tax as well.

There are tricks in structuring, such as if electing to be taxed as a c-Corp you pay the corporate tax rate on your income, but you can make loans to yourself on a tax free basis. The IRS hurdle is you need to make monthly payments or draft a promissory note from the corporation to you the person.

 

Consequatur voluptas totam atque nam. Quae laboriosam ut et hic mollitia laudantium vel. Odit fugit veritatis ea rerum reprehenderit in voluptate.

Adipisci animi vitae eos id molestiae deleniti quidem. Aperiam nostrum sint ut aut. Perspiciatis consequatur soluta autem numquam possimus id sit. Nihil corporis sunt laudantium consectetur ad sit.

Dolor at et cum ut consequatur corrupti. Itaque ratione quibusdam laudantium placeat autem.

Aliquid aliquid in reprehenderit sed doloribus quam architecto est. Molestias blanditiis et enim veritatis.

Career Advancement Opportunities

March 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Goldman Sachs 19 98.8%
  • Harris Williams & Co. (++) 98.3%
  • Lazard Freres 02 97.7%
  • JPMorgan Chase 03 97.1%

Overall Employee Satisfaction

March 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

March 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

March 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (19) $385
  • Associates (86) $261
  • 3rd+ Year Analyst (13) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (66) $168
  • 1st Year Analyst (202) $159
  • Intern/Summer Analyst (144) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”