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Updated 11 months ago,

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3
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4
Votes
Victor Solomon
4
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3
Posts

Can I acquire multi-family property through my S corp?

Victor Solomon
Posted

hey guys -- here's one: 

- I live in a multi unit property (4 units) and would love to make an offer to acquire it from my landlord / owner

- I have a single owner S Corp that does well, I pay myself a reasonable W2 salary with, but not likely impressive enough to qualify for the appropriate mortgage necessary

- Imagine needing ~$6M for the acquisition -- plan to keep one unit as short term rental, convert one unit to office for S Corp and combine the other two to become my primary dwelling 

- I can put together ~$2M cash as downpayment -- but could the S Corp be the entity to acquire this property? 

- Thinking is: low 7 figure gross revenue from S Corp looks better than low six figure salary I pay myself, Using one of the units as S Corp office could unlock some tax benefits, Using the 4th as a short term rental (under the S-corp) could unlock even more

So: Can I acquire property via S-Corp and is this a benefit or add unnecessary complexity because of the past-through structure of corp?

Thank you!

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