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Updated almost 10 years ago,

User Stats

87
Posts
3
Votes
Eric Fete
  • Real Estate Investor
  • columbus, OH, OH
3
Votes |
87
Posts

S-corp for properties: Hard to sell?

Eric Fete
  • Real Estate Investor
  • columbus, OH, OH
Posted

Hi all

I had several properties in a LLC and in order to buy more my mortgage broker (very savvy guy) had me re-structure/re-characterize my LLC into an S-corp (essentially a LLC taxes as S corp). That way that one entity could hold several properties and then I could then buy more in my own name (we can buy 10 in our own name through Fannie etc)

I was told by a real estate attorney that holding properties this way (in S corp) could be problematic when the time comes to sell them. He mentioned it's not advantageous from a tax perspective, having to pay some type of entity level tax? Anyone heard of this or had issues selling properties out of an S corp?

I don't plan on putting more properties in the corp; it was a one time thing to allow me to buy more.

Thanks for any input!

Eric 

Columbus, OH

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