All Forum Posts by: Step Stheph

Thank you Alan Rohrer and Basit Siddiqi so much for your replies. I don't see the way to answer to each of you individually so I will add a bit clarification here. The house sits across 3 lots so it will most likely need to go all together in a sale, rather than sell the land and keep the house. I will definitely use the lawyer to set up the Corp, I just was not sure which form of business would allow this transaction, LLC or S corp or C corp. Thank you Alan for clarifying that, I will do more research for sure. I just needed to know if this is even possible and legal. I am not necessarily trying to avoid self employment taxes, though it's a good idea, and I want to pay tax on the earned profit after the development of the land (either myself or via a hired contractor). I mostly would like to exclude the 250/500K that I am allowed for living in the house for 2 out of 5 years. And then want my corporation to take those purchased lots and develop them to earn profits. Does this still sound viable? It's not self dealing? I heard that mentioned when I asked some people here in town. Again, thanks so much, it's wonderful to ask these questions within a community that is like minded.

Hello all and thank you so much for maintaining such informative site. I am in TN and live in a home with its yard that turns out contains 4 lots. These lots just need to be reinstated and can be built on, a home on each. I will soon be living full 2 years in that home and my question is the following: Can I sell that home as a person to an LLC (or another form of business) in which I will have sole interest or me and my husband will? I would like to take advantage of paying no taxes on that transaction. Then I would use that lot to build 4 homes as this business undertaking and hope to have the cost of lots be part of my investment, meaning when one day I sell those new homes, I will subtract lots and cost of building from my sales, so to reduce my eventual tax on the profits. I hope this is clear enough....basically I want to sell as a person to a business entity and that business entity does the building and selling of these homes. Anyone knows? If not, who do you think would have the clear and final answer to such question? A CPA or a RE lawyer? Thank you very much ahead.