๐Ÿšซ Why Holding Real Estate in an S-Corp Could Hurt Your Bottom Line ๐Ÿ ๐Ÿ’ธ - Palma Financial

Are you considering holding your real estate in an S-Corporation?ย Think twice!ย ๐Ÿค”

While there are some tax benefits to holding real estate in an S-Corporation, significant drawbacks could hurt your bottom line.

Here areย five reasons why you should avoid holding real estate in an S-Corporation:

  • Potential Built-In Gains Tax ๐Ÿ“ˆ
  • Double Taxation on Sale of Property ๐Ÿ’ฐ๐Ÿ’ฐ
  • Restrictions on Passive Income๐Ÿšซ
  • Limited Transferability of Shares๐Ÿ”’
  • Higher Audit Risk ๐Ÿ”Ž

Instead,ย consider holding your real estate in a Limited Liability Company (LLC) or a Limited Partnership (LP)ย to take advantage of their flexibility and avoid potential tax issues. ๐Ÿข

At Palma Financial Services, Inc., we can help you navigate the complex legal landscape of real estate ownership and make the best choice for your specific needs.

๐Ÿ“…๐Ÿ“šBook a tax assessment with meย to learn more about your options for real estate ownership.