Posted by BizBrkrVA on April 20, 2006 at 20:28:54:
Ed,
Thanks for the idea, just what I needed to get started!
Pre-tax biz inc to dp on pri residence LEGALLY?? - Posted by BizBrkrVA
Posted by BizBrkrVA on April 19, 2006 at 23:05:13:
Looking for creative tax and finance strategy to take income from a business and use for downpayment on a home pre-tax. The rub is I would plan to use it as my primary residence vice do the deal as an investment. So rather than XYZ, Inc. using its profits to buy an investment property I need a way to legally have it downpay on a home I would live in. Would also like to keep the tax advantage from mortgage interest and real estate taxes for a personal write-off if possible though that could be worked other ways. Thanks in advance!
Re: Pre-tax biz inc to dp on pri a house LEGALLY? - Posted by Ed Garcia
Posted by Ed Garcia on April 20, 2006 at 09:31:46:
BizBrkrVA,
My first suggestion is to check with your accountant or CPA
If I understand your post correctly you want to take the down payment from your business to purchase a home for you to live in, with you getting all of the tax benefits of a home owner. Your thinking is if your business purchases the home as an investment property, then they of course would enjoy the write off as an investment property.
That may or may not be so, I think your accountant or CPA can give you your options better then we can because they know your financial picture.
One option is for you to take a loan from your business for the down payment money to purchase the house, pay them back the money with interest. In doing so, you can personally purchase the house write off the interest from your first mortgage and write off the interest you?re paying your business or company for the loan. You can have a first mortgage on the house from a mortgage company and a second mortgage being held by your business which would be the cleanest way to do the deal. You?ve now made your business a lender rather then a principal owning the home. I?m assuming your business is a Corporation or legal entity.
Ed Garcia
Re: Pre-tax biz inc to dp on pri a house LEGALLY? - Posted by Peter_MD
Posted by Peter_MD on April 25, 2006 at 12:30:56:
Ed:
You never cease to impress me with your wealth of knowledge.