Holding Real Estate in an S-Corp Could Hurt Your Bottom Line

Are you considering holding your real estate in an S-Corporation? Think twice! 🤔

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

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

  • Potential Built-In Gains Tax 📈
  • Double Taxation on Sale of Property 💰💰
  • Restrictions on Passive Income🚫
  • Limited Transferability of Shares🔒
  • Higher Audit Risk 🔎

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

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.

📅📚Book a tax assessment with me to learn more about your options for real estate ownership.