business structures for tax savings...

gotmike profile photo

i have read all over the place that the best way to do structure deals is to do flips inside a c-corp and hold rental property inside an llc. i have two questions about this...

1) if i am generating cash inside my c-corp and wish to avoid the double taxation when using that cash to purchase rental property, how to i transfer the money from the c-corp to the llc without incurring this penalty?? may i make super-low interest loans from one structure to the other?? does that even help??

2) i see a lot of talk about holding properties inside business structures such as corps and llcs, but i'm not certain how this is actually structured. does that mean that the business is the trustee of the land trust which is on the deed?? how do you get the loan written properly?? are you getting non-recourse loans from banks or mortgage brokers to the business or are you cosigning these loans?? maybe you are signing the loans personally and deeding the property to the business??

i think i understand the reasons for doing all this, but i am a little vague on how to actually make it happen at or near closing time. what are the benefits or disadvantages to the different methods of making this happen??

Comments(1)

  • DaveT3rd April, 2003

    This question was originally posted in the Tax Strategies Forum and moved to this forum.

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