Posted by Bud Branstetter on February 03, 2001 at 22:24:55:
You did show the funds on your corporate books as a loan didn’t you? And this was a participatory loan where the C corp. got a percentage of the profit, wasn’t it?
Of course you don’t want to make too much in the corp. or you pay too much in taxes.
Property not titled in Corp. Name and taxes - Posted by Dave - FL
Posted by Dave - FL on February 03, 2001 at 22:18:06:
This past year I bought a property with the intention to lease option it. I successfully did that however the bank insisted I was named personally on the mortgage and that lead to the deed in my personal name. I also built a home for speculation - same situation - mortgage and deed are in my personal name. I had used corporate funds to buy and build. Am I guilty of comingling of funds or was I rightfully acting as a corporate agent getting the job done the best way I could and the corporation is entitled to any tax or profits? It’s a C corporation I’m using.
Re: Property not titled in Corp. Name and taxes - Posted by John Burley
Posted by John Burley on February 04, 2001 at 14:10:33:
Dear Dave,
The good news is that you don’t want the property in the corpl anyhow. If the corp. gets sued and loses the property is gone. Never hold real estate in an entity that is active in other activities (such as buying and selling real estate).
Instead hod the real estate in an LP, LLC, or Trust (thus placing separation between the acts of the corp. and the asset).
Most likely the best way to proceed at this point would have the corp. make a loan to you (or the entity) with a repayment schedule and interest charged, (high or low) whichever works out best for you and the corp. on a tax point of view.
Good Investing,
John Burley