What is the best way to protect a real estate purchase from a Federal tax attachment?
I read that the overall tax consequences of holding real property in an S-Corp is prohibitive. I'm not sure if an LLC protects against Federal tax liability.
Public Comments
- hold it inside your 401k. Though you can't use the property yourself if that's the case. But if it's pure investment property then put it in your 401k. But that only works if you don't already own the business or are currently using it in any way. 401k can own property but it can't purchase property from someone associated with the plan, nor can anyone associated with the plan benefit from the property (other than through gains). I know of one company in texas that will serve as trustee and custodian.
