Our clients usually come to us with questions regarding real estate and corporations after they’ve attended a real estate meetup or guru event. And it’s great that whatever they heard excites them about taxes enough to talk to me. But it’s always a huge let down for the client when I show them how often bad advice floats around those events.
No one should ever put rental real estate inside a corporation. Ever.
Sounds pretty extreme right? Heck, the tax code is so convoluted that there must be an exception somewhere, right? Nope, absolutely not. Rental real estate should never be placed inside a corporation.
Buckle up because you’re about to hear the laundry list of reasons I give to any client considering placing rental real estate inside an S-Corporation or a C-Corporation.