Re: starting a corporation vs. Land Trust - Posted by nicola lawrence

Real Estate Investing Real Estate Law
1

Posted by Garrett Sutton on August 01, 2005 at 14:51:51:

John: Try again or you can call toll free 800 700 1430. Thanks, Garrett

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Re: starting a corporation vs. Land Trust - Posted by nicola lawrence

Posted by nicola lawrence on July 26, 2005 at 17:34:41:

Hello Sir - I was told by one of these Nevada Corporation Start-ups that a
C- Corporation was what I need to start (not a Land Trust) because we
were selling our california home we owned only a year, in a few months.
What do you think?

Thank you for taking my question
NL

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Re: starting a corporation vs. Land Trust - Posted by Tom Bazley, CPA

Posted by Tom Bazley, CPA on July 27, 2005 at 11:52:38:

No way. Do NOT put real estate into a C-corp.

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Re: starting a corporation vs. Land Trust - Posted by nicola lawrence

Posted by nicola lawrence on July 31, 2005 at 14:51:26:

Thank you both for answering my question. Me and my husband
are dying to get out of Southern California. What is the best option
to avoid capital gains penalty, when we already have another
house that is cheaper that we plan to occupy?

Thanks again
NL

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Re: starting a corporation vs. Land Trust - Posted by Garrett Sutton

Posted by Garrett Sutton on July 28, 2005 at 17:36:57:

Tom is absolutely right. You will not put real estate into a C corp. Stay away from any group that would offer such advice. Garrett

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Re: starting a corporation vs. Land Trust - Posted by John (Rome)

Posted by John (Rome) on August 01, 2005 at 06:25:30:

Hello,

would you please elaborate? When would you suggest using a C Corp? To hold ownership od LLC’s. to flip or what?

Thanks

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Re: starting a corporation vs. Land Trust - Posted by Garrett Sutton

Posted by Garrett Sutton on August 01, 2005 at 14:02:23:

I never suggest using a C corp to either own the property directly or to own the LLC that has title to the property. The issue is double taxation, a feature of C corps but not S corps, LLCs or LPs. You’ll pay much less in tax by not using C corps for your real estate holding activites. Garrett

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Re: starting a corporation vs. Land Trust - Posted by Tom Bazley, CPA

Posted by Tom Bazley, CPA on August 01, 2005 at 09:33:38:

C-corps are better suited for flips. But it depends on the situation. I have some clients use a limited partnership for flips & some use an S-corp. Others use a C-corp. There’s no hard & fast rule as to which is appropriate, it simply depends on the owner’s overall goals & objectives.

The only things hard & fast is you should not own real estate in a C-corp.

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Re: starting a corporation vs. Land Trust - Posted by John (Rome)

Posted by John (Rome) on August 01, 2005 at 14:38:54:

thanks for the feedback - I had emailed your firm for some structuring advice but as of yet haven’t recieved a reply.Perhaps I should try again.