Taxes - refinance in own name, QC to S corp - Posted by Jack B

Real Estate Investing Real Estate Law
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Posted by Frank Chin on April 29, 2005 at 08:43:49:

Jack:

I refi, invest proceeds into other properties, and businesses. Its not a taxable event.

As to your banks underwriting rules, most banks do not keep loans in their portfolios but sell the loans FNMAE etc., and these orgainizations buy loans in name of individuals, not “S Corps”. These government sponsored orgainizations utilizing US Government faith and credit are for the purpose of promoting home ownership, not to assist in “real estate investing”, to use a more charitable term.

If there is no such rule, and Congress finds out that funds are going instead to real estate speculation, then, they’ll put a stop on it really quick.

Frank Chin

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Taxes - refinance in own name, QC to S corp - Posted by Jack B

Posted by Jack B on April 29, 2005 at 07:01:33:

Owned a property in an S corp, which I refinanced in my own name to take 80% cash out (their rule is 70% for S corp). Plan to quit claim it back to my corp. following my closing, which is apparently OK by them. What are the tax implications since the money will be reinvested in other investment properties?

As an aside, I personally guaranteed all my other purchases through the S corp so I don’t understand the bank’s underwriting rule about refinancing in my own name.