Real Estate Trader vs.Investor

Went to class for past 3 days. My brain is just coming out of its intellectual fog to report some nuggets that will create a great defense is the game of keeping your money. Will report more later but the two biggies are being a Real Estate trader instead of an investor. What's in a name? A lot. The IRS looks at an investor as a hobby and gives the breaks to the trader.

When you become a business you want to become a 'c' corporation. You can start as a 's' corp. but once you become profitable you want to be a 'c' corp. This is just a form to fill out. Make sure the key words like "medical expenses" amoung other are written into the form so you can take the deduction.

You want to keep all assets in corporation name. Nothing in your own name. Then so you can pass the corporations onto your family when you are dead you need a living trust and a FAMILY LIMITED PARTNERSHIP. The Limited Partnership irc sec 704 keeps wills out of probate.