|Posted by: Ken Jul 5 2004, 05:31 PM
|I have 3 rental properties under my name. Can anybody please let me know what is the advantage of moving the 3 rental properties to a company name?
|Posted by: loanuniverse Jul 6 2004, 08:47 AM
The advantage of owning an asset under a separate legal entity is to safeguard against liability. That way if something were to happen in one of the properties, the rest of your assets are protected.
You can avoid double taxation, by choosing a pass-through entity such as an LLC or an S-Corp. However, the fact that you are creating a new entity means that you are going to have to file separate tax returns.
You need to consult an attorney to find out if this would be beneficial to you and what expenses are associated with the move. The transfer of ownership can trigger payment in full of the loans currently in place so you will need to check that out also.