When it comes to real estate investments, asset protection is about personal liability and tax reduction. Both will need a good real estate lawyer right from the start to create the right business structure, register everything and be on hand for every transaction for ensuring clear titles, drawing up deeds, and so on. Listed below are all such legal aspects related to asset protection for real estate investments.
Do you or does someone you know need legal information regarding asset protection? Our real estate lawyers are here to help. Contact a real estate attorney in your area today for more information.
Buying and selling property as an individual is a call to the IRS to brand you with "dealer status" and lose all your tax benefits as a real estate investor. As such, it has to be a company, and you can choose to set up an LLC or an incorporated company, which can be an S or C Corporation. You can also set up a land trust and transfer your assets into it, with the company as the beneficiary.
There will be property tax and income tax issues to deal with, especially if you plan to rent some or all of the properties. Setting up a trust has the double advantage of protecting all the assets from your personal liabilities, IRS liens and lender foreclosures, along with savings related to the estate tax and probate costs when you want to pass on your estate to your beneficiaries.
Do you have additional questions regarding asset protection? Our real estate attorneys are here to assist you throughout the process and answer any questions you may have. Contact a real estate lawyer near you today.
Did you know?
Using a corporation for real estate investments means you pay only the corporate tax rate.
Individuals may be subject to the dealer tax when an LLC offers pass-through taxation. However, setting up a corporation allows you to limit the tax to the corporate tax rate.