Can I avoid California taxes with a Delaware LLC?

August 12, 2011

From:  Marcus
Date:  8 Oct 2008

Hello,

I’m a California real estate investor starting to "flip" residential properties. Am I able to avoid California state taxes and/or self-employment taxes by conducting these transactions using a Delaware LLC?

Thanks in advance.

Marcus

Answer

Date:  5 Nov 2008

Hello Marcus,

No.

Good luck!
Mike Gray

We have more answers to frequently asked real estate tax questions! We also offer up-to-date information about new tax real estate tax developments in Michael Gray, CPA's Real Estate Tax Letter.

IRS Circular 230 Disclosure: As required by U.S. Treasury Regulations, you are hereby advised that any written tax advice contained on this website was not written or intended to be used (and cannot be used) by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code.