Two quick questions - Posted by stacy

Real Estate Investing
#1

Posted by JPiper on December 17, 2000 at 09:36:51:

There’s no problem with having your corporation as beneficiary if that’s what you want to do.

You could set up a separate management company which managed your properties held in trust, collected checks, and then disbursed monies to the beneficiary (whoever that may be). Or, the check could be made out to the beneficiary directly…however that would obviously sacrifice the anonymity of the beneficiary.

I’d get Bronchick’s land trust course. My guess is he covers all this and more.

JPiper

#2

Two quick questions - Posted by stacy

Posted by stacy on December 15, 2000 at 15:08:47:

Just formed a C corporation & have couple of questions.

  1. If I use a land trust to buy “subject to”, transfer beneficiary interest from seller to Corp, L/O or owner finance to buyer… does the accounting (proceeds from buyer)go into Corporation account? Do I need another account because of the Land Trust??? Little confused.

  2. Just formed Corp in December. If corp year ends June 30, are any tax forms due before? Seems like I read all corporations need to file quarterly regardless of profit/loss. Please clarify.

Thank you very much.

#3

Re: Two quick questions - Posted by JPiper

Posted by JPiper on December 15, 2000 at 22:43:01:

Stacy:

Don’t pay any attention to this idiot Vic…he shows up every once in a while when his Mommy isn’t looking.

Bud had your answers below. The IRS looks through the land trust to the beneficiary for tax purposes. If the beneficiary is a Corp, then income would be accounted for as a corp, and taxes paid as a corp. I wouldn’t set up individual bank accounts for your trust. When you end up with more than one this can become a headache. You could set up a management corp who the checks are made out to, and then pass that through to the beneficiary. Or, you could have checks made out directly to the beneficiary, understanding that this foregoes part of the advantage of the land trust…concealment of the beneficiary.

The IRS says you file estimated quarterly taxes. If you don’t, you could pay a penalty.

JPiper

#4

Re: Two quick questions - Posted by Bud Branstetter

Posted by Bud Branstetter on December 15, 2000 at 18:41:07:

  1. The land trust is transparent to the IRS. Account it to who owns it.

  2. You created a corporation to make money. The IRS wants to collect an estimated tax each quarter instead of waiting until the end of the corporate or calendar year.

#5

Re: Two quick questions - Posted by Carey_PA

Posted by Carey_PA on December 16, 2000 at 21:44:59:

Jim,

I’m just really trying to grasp the concept of land trusts and I’m hoping you can clarify your answer from above a little more for me…you said:
“Or, you could have checks made out directly to the beneficiary, understanding that this foregoes part of the advantage of the land trust…concealment of the beneficiary.”

So, how does she get paid??? Who do the checks go to??? For instance if I have a land trust and my corp. is the beneficiary. Should my corp. BE beneficiary, etc???

THanks soooo much Jim…

CAREY