Discussion:Real Estate in a Corporation
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Discussion Forum Index --> Tax Questions --> Real Estate in a Corporation
Westcoastbeginner (talk|edits) said: | 25 August 2007 |
| I am new to this site and to the Corporation advantages. I have a Corporation, and want to put Real Estate Holdings under the corporation. How do I do that?
But, in this ugly real estate market, what happens if one of these properties goes upside down and I am faced with making a decision to do a short sale vs. foreclosure or even bankruptcy. Can you even file a Bankruptcy on one property that is held in your corporation? What will happen to your corportation then? What are the tax disadvantages to allowing property into your corporation. Need help - cannot find any info on the net for this. | |
Bottom Line (talk|edits) said: | 25 August 2007 |
| Do a search for "real estate in corporation" in the yellow box to the left. You'll see that RE should not be held in a corp but an LLC is probably the best option. | |
| 25 August 2007 | |
| you might ought to learn about Passive Activity Losses and Net Operating Losses while you are busy doing your searches.
As far as bankruptcy, you would be wise to ask an attorney who specializes in bankruptcy those questions. Getting to know the attorney well now will stand you in good stead very soon. | |
| 25 August 2007 | |
| you might also search "advantages of real estate in a corporation" here and on Google. If the list is short or non-existant, then I would take that as a sign. | |
| 25 August 2007 | |
| ha, just for grins and giggles I did a search on advantages, not much, but look at this | |
Bottom Line (talk|edits) said: | 25 August 2007 |
| Wow - look at the count - 1,960,000 | |
| 25 August 2007 | |
| yes, and some interesting reading on some of the links, too | |
| 25 August 2007 | |
| There may also be liability protection advantages to using an LLC (better yet, multiple or series LLCs, one LLC or one series per property) over a corporation for holding real estate. These are questions for your attorney. | |
| 25 August 2007 | |
| WCB, in case Kevin and BL and Katie are too subtle, YOUR IDEA IS REALLY A DUMB ONE. Don't do it. One of the most common questions on this site relates to how to fix problems caused by someone who has appreciated real property inside a corporation who doesn't like the tax consequences when time comes to sell or otherwise get the property out of the corp. See an attorney as Katie has suggested and see a tax professional as well. Many attorneys (not all mind you) are ignorant of the tax consequences of some of the bonehead ideas they counsel their clients to do. | |
