Titling Real Estate Investment Property
My wife and I formed an S Corp for our real estate investment business for liability and self employment tax reasons. My question is how do we put the title of the propery in the name of the corporation if we are required to personally file the loan paperwork on our first couple of investments? Anyone have experience with this or can you recommend an attorney in the Atlanta area.
Thanks,
Bill
I have discussed this issue from time to time and there is no easy way to put a property into an S-Corp when using a bank. The best way is to tell them to do it right before closing for "estate planning". They may or may not do it. You could always buy the property in your own name and then immediately transfer it into the S-Corp. You will have to pay transfer taxes, so that is definatly an expense you should plan for.
Also, I'm guessing that you set up an S-Corp for wholesaling or rehab work. You will need another company set up as a property management company to manage the work. An S-corp cannot have accounting entries to do much other than buy and sell otherwise the IRS will tell you that you need to pay yourself as an employee!
You should definatly find a good tax strategist as my advise is advise of a layman, not a professional. They are worth their weight in gold! And that is a lot of money!
Quote:
On 2003-12-15 13:49, myfrogger wrote:
I have discussed this issue from time to time and there is no easy way to put a property into an S-Corp when using a bank. The best way is to tell them to do it right before closing for "estate planning". They may or may not do it. You could always buy the property in your own name and then immediately transfer it into the S-Corp. You will have to pay transfer taxes, so that is definatly an expense you should plan for.
Also, I'm guessing that you set up an S-Corp for wholesaling or rehab work. You will need another company set up as a property management company to manage the work. An S-corp cannot have accounting entries to do much other than buy and sell otherwise the IRS will tell you that you need to pay yourself as an employee!
You should definatly find a good tax strategist as my advise is advise of a layman, not a professional. They are worth their weight in gold! And that is a lot of money!
Thanks for your response. I appreciate the advise.