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Discussion Forum Index --> Basic Tax Questions --> Real Estate in Corp
Discussion Forum Index --> Tax Questions --> Real Estate in Corp
Ztom (talk|edits) said:
| 20 April 2009
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| I have always heard that you should never put Real Estate in a Corp. Am I right in thinking that putting it in a C is not good but an LLC of S should be alright since the results flow thru to the individuals. I have a client who owns a Commercial Offic Rental building and a small grocery store. I beleive becuase of liabilities they should form a LLC or S, but not sure which one to suggest. Both business's make net profit, the store nets around 35k and the rental nets around 135k. Both business are owned by individual and debt free.
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MTDCPA (talk|edits) said:
| 20 April 2009
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| If the liability issue is important LLC is preferable can take distributions to the extent of liabilty (and income)with no tax consequenses. Either LLC or S Corp would eliminate double taxation on a profitable sale of real estate so for this reason would be preferable to C Corp.
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MTDCPA (talk|edits) said:
| 20 April 2009
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| That was kind of a simple answer, a lot more variables can come into play but I beleive that I addressed the most obvious. You should do some reading on entity formation and you can familiarize yourself with other variables.
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Jctmstx (talk|edits) said:
| 20 April 2009
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| Don't use an S Corp. Use the yellow box and type in "Sub S and real estate". Select the first discussion and see the multiple reasons why Sub S (A Corp)is not the way to go.
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JR1 (talk|edits) said:
| April 20, 2009
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| Never ever no not ever in a corp of any kind.
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PBinNJ (talk|edits) said:
| 20 April 2009
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| Jctmstx - could you give the specific title of the discussion you referred to? thanks.
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Jctmstx (talk|edits) said:
| 21 April 2009
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| Reasons to transfer real estate into an S Corp
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