S-corp title question - Posted by Jane NV

Posted by Lyal on July 14, 2003 at 07:33:16:

Check the archives on the legal board for answers to this question. Been discussed many times previously there.
All the best, Lyal

S-corp title question - Posted by Jane NV

Posted by Jane NV on July 12, 2003 at 23:24:28:

My husband and I own a house with both sets of our parents that we have rehabbed. My CPA recommended that we form an S-corp to help us with taxes. My husband’s parents’ CPA told them that they themselves don’t need to join the corp. Can I put the S-corp and my husband’s parents on title with an undivided interest? Thanks for the responses.

Re: S-corp title question - Posted by JT-IN

Posted by JT-IN on July 13, 2003 at 11:34:50:


You could do that, but I do not recommend doing so. Unfortunately, in order to explain all the caveats and pitfalls of doing this it would take a chapter in a rather large book to fully describe the reasons why NOT do so. You should acquire the services of a RE Atty and have him asnwer this question fully, making sure you understand the pitfalls.

What I would recommend is a Land Trust, of which the beneficial interest is split between the S-Corp and the inlaws… which will accomplish the same goal and eliminate the pitfalls of joint tenancy between the Corp and the inlaws.

DEpending upon the intended exit strategy of this property, the advice to form an S-Corp may be good, or it may not be. S-Corps are normally used only by parties who intend to flip properties, and not hold for long term. Long term investors usually are better served by the advantages of an LLC, instead of a Corp… Each situation varies.

For more specific tax advice you may want to consult with John Hyre, on the tax forum of this site. John is a tax Atty and a CPA, as well as a RE investor and author.


advantages of S-corp. - Posted by Marion

Posted by Marion on July 14, 2003 at 24:26:49:

Could you please tell what advantages there are to holding property long term in an LLC, rather than an S-corp. Thanks.