Tax Extension Center continues its series of The Top 100 Reasons to File a Tax Extension. Our aim is to inform taxpayers that a tax extension can be a valuable option because it saves time, stress, and even money.
Here’s reason #48: you’re a serial entrepreneur with several LLCs for your rental properties.
Some people are obsessed with starting businesses. They don’t just start one, they start three or four and keep them all running at the same time. And usually this type of business maven has some equity in a few others.
One common scenario of the serial entrepreneur is in real estate. Setting up a different LLC for each property is one way to handle taxes. It keeps each property clean accounting-wise and makes things easier when it comes time to sell.
The big pain in the you-know-what for this strategy is tax time. Instead of just having one “company” to file for, there are several. And all of those intermingle with your personal taxes. It’s tough to get all of that organized in time.
Filing a tax extension is a good option for those of us that can’t stop chasing the dream. The extra 6 months are the perfect way to get all of the paperwork together and think through all of the ramifications on your personal tax situation.
Maybe you are new to filing an IRS tax extension. Or maybe you file one every single year. Either way, remember that a tax extension does not give you more time to pay what you owe the IRS. You still need to make your payment by midnight on April 15. An IRS extension gives you more time to file the necessary tax forms you’re supposed to file. Failing to make a payment could make you subject to tax extension penalties and interest.
Got any thoughts about tax extensions? Let’s chat in the comment section below.
