Should a Corporation Own Real Estate?

Question: I intend to buy a commercial real estate property. Should I form a corporation to own the real estate?

Answer: No. Nope. Absolutely not. No way. Negative. Are you kidding? Ix nay. Uh-uh. Nah. Not on your life. No way. No way José. Ixnay. I hope you don’t misunderstand my position.

An article in Forbes called “Why You Should Never Hold Real Estate In A Corporation” states:

“Take, for example, the client who contemplates the type of entity that should be used to hold a piece of real estate. For most tax practitioners, this would elicit the following Pavolovian reaction: ‘You should NEVER put real estate inside a corporation.’ And while there are very few NEVERS in the tax world, this one is pretty darn accurate.”

See also “The Perils of Holding Real Estate in a Corporation,” which discusses the federal income tax reasons it is a bad idea for a corporation to own real estate.

Richard Keyt2018-05-22T18:46:34-07:00January 1st, 2017|Forming LLCs, LLCs & Corporations, Tax Issues|0 Comments

About the Author: Richard Keyt

The author of this article is Richard Keyt, an Arizona limited liability company and estate planning attorney who has formed 8,800+ LLCs. His Silver & Gold LLC packages include the $85 expedited filing fee, a custom Operating Agreement and 170 ebook called the Arizona LLC Operations Manual. Read Rick's 338 five star Google & Birdeye reviews. Connect with Richard at 480-664-7478 or send him an email message at [email protected]. Make a free appointment using his online calendar at https://www.keytlaw.com/rk

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