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.