S-Corp – Tax/Liabilities
Hello everyone, love this site.
Please advise on this scenario:
Pennsylvania - S-corp : 3 partners
2 –houses bought under corp (got financing w/ huge down payment). Corp on Title and Corp on Mortgage
3 - houses we didn’t want to invest money into. Therefore started to buy houses under personal names from Tax Sales. After rehab, we financed the properties, each partner had under his/her name a mortgage for each house, but the title was under all 3 partners names.
All properties are rented out, for long term. Nothing was flipped. We are thinking of building a portfolio of rental, and maybe flip few on the way.
None of the monies will be taken out of the Company for at least 5 years. All income is reinvested.
Questions:
1)How can we protect ourselves again liabilities? Land Trust, etc.
a. I don’t know where I read it, but transferring title in PA will result a 4% transfer tax. Can that be avoided?
2)How would a quitclaim deed help us?
3)Which entity would give us the best Tax advantage?
4)Should we from now on, purchase under a trust? suck up the huge % and down payments when financing under a corp/trust or purchase under a trust/corp and personally guarantee the mortgage?
5)If the property is bought under a Corp/Trust and the mortgage is personally guaranteed. Are there any liabilities during lawsuits
Local lawyer suggested creating a General Partnership that owes 1%, and 3 LPs, that own the rest equally. Is that a good advise? Then have each of us, donate or resign the properties to the GP.
Your opinions and advises are greatly appreciated!!!
If anyone can point out, where i can find more info to my questions. I would trully appreciate it. I undestand people spend time and money learning, therefore i have no problem paying for advise or learning material. Thanks in advance.