Sell privately or move it under an S-Corp first?

[Christopher Wasowicz]

My parents own a rental (has a mortgage) that we were going to transfer it under an S-Corp assuming it doesn’t trigger the due-on-sale. However, after an analysis, Turns out the property is not very profitable, so we are going to sell it.

What, if any, advantages are there to selling it under the S-Corp vs selling privately?

[Eamonn McElroy]

@Christopher Wasowicz

Typically you don't want to hold appreciating assets like rental real estate inside of a corporate tax entity.  There are limited circumstances in which it may make sense.  Usually disregarded entities (if single owner) or partnerships (if multiple owner) make the most sense from a tax perspective.

I see no reason to transfer rental real estate to an S Corp before sale if you're contemplating selling it.  Why do you think there is an advantage?