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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4518
Experience:  35 years tax experience, including four years at a Big 4 firm.
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Just investigating land holding in c vs s corp, I am

Customer Question

just investigating land holding in c vs s corp
JA: The Accountant will know how to help. Please tell me more, so we can help you best.
Customer: I am starting a corp, not decided on c or s yet, for a horse business in texas. I have some personal land I want to transfer out of my name for protection purposes...
JA: Is there anything else the Accountant should be aware of?
Customer: no
Submitted: 6 months ago.
Category: Tax
Expert:  PDtax replied 6 months ago.

Hi from Just Answer. I'mCustomer and can assist.

Expert:  PDtax replied 6 months ago.

Liability protection is a great reason for the transfer. Most advisors will caution you away from c corps due to the extra tax on appreciation when you sell. The S Corp also has a hidden extra tax, the built in gains tax, on real estate. But I think your protection is the key, as my sense is you just want to hold this land long term. For a business purpose.

Either Corp or an LLC will do what you want. I can offer one more piece of advice:

Umbrella liability insurance. It is insurance for issues your business may have that kicks in if you are sued personally. Inexpensive, and all with the peace of mind. Review the coverage with your insurance agent.

Thanks for asking at just answer. Positive feedback is appreciated once I have addressed your questions. I'mCustomer