Skip to content
Tax, SDIRAs & Cost Segregation

User Stats

2
Posts
0
Votes
Elio Mariani
  • Tampa, FL
0
Votes |
2
Posts

Holding property in LLC/Corp

Elio Mariani
  • Tampa, FL
Posted Oct 29 2011, 18:48

I plan to buy a rental property with cash from personal assets (stock market) and I plan to have the title held in an s-corp, for liability protection. Is there liability protection value in having the s-corp borrow money from me for the purchase?

Assuming the s-corp buys the property for $250k, then the s-corp would have the $250k property as an asset and no liability. If sued, the s-corp risks losing the property. If the s-corp secures a loan from me for the purchase, would it limit the exposure if sued? Would $250k in assets be offset by a $250k loan... giving s-corp $0 on the balance sheet?

Thanks!

Loading replies...