Are there tax advantages to purchasing a house using a corporation?
Posted on February 23, 2009 by admin
Nicholas asked:
What are the advantages and disadvantages of setting up a corporation to purchase a house or other real estate assets? Are there any?: Why do people do it?
What are the advantages and disadvantages of setting up a corporation to purchase a house or other real estate assets? Are there any?: Why do people do it?
There could be some tax advantages, but this needs to be checked with a tax attorney or CPA.
The main reason people do this is not for tax advantages, but for “protection.” If a property is owned by a corporation, it cannot be taken from you along with your personal property in case something happens. This mostly applies to your “other” real estate properties because your primary residence can be protected by homestead and other means.
But, if you want to buy a property using a corporation and live in it, then you’ll have to “rent” from corporation, which is also OK.
The best thing is to get in touch with a real estate agent first. Discuss what kind of property you want to buy, then have the agent investigate different ways to do it. I’m sure you know that it doesn’t cost you anything to have an agent work for you, when you are a buyer. So, why not have a professional do the digging and all the work?
If you wish, contact me (even if you are not in my area.) My contact info is on my web site (see below.)
Best way is a LLC.
LLC all the way. If you have any more questions you can email me directly