Blackman on Taxes: Business Real Estate: The Best Way (Tax-Wise) To Own It

摘要

The first commandment of my someday-I-will-write-it bible of taxation would be, "Thou shalt not put real estate into a corporation." We see it at least a dozen times per year: When readers of this column ask us to provide a tax consultation, usually for transfer/succession/estate planning, we find the business real estate in a separate C corporation (sometimes an S corporation) and leased to the operating corporation. Often, the real estate is owned by the operating corporation. Not only are these the wrong choices, but they are tax disasters waiting to happen. Here's why.