Posted by Tim on March 04, 2002 at 10:58:19:
Thanks for your reply. If I buy the property in my name (i.e., personally) and the loan is in my name, could I get around the DIVIDENDS and DOUBLE taxation issue by immediately selling the property to my C Corporation and have the C Corporation take the property subject to the loan? In this case, wouldn’t the C Corp. be able to deduct the interest expense on the payments made directly to the bank even though the loan is still in my name?
I would assume that I would have to report the purchase and sale on my personal return (there would be no gain or loss since I would sell to C Corp. at my purchase price). Would this be a potential “dealer” issue for me personally?
Thanks for helping me think this through.