Are you thinking of moving to a new home?
Then I have good news for you …
You see, your current home might make a great rental property which could create tax-free income for you plus you could form a new S corporation that would give you a step-up in the depreciable basis for the rental house.
Want to find out more? Easy. Read my new article titled Tax Tips: Sell Home to S Corporation and Then Make It Rental Property.
Three great benefits this strategy delivers:
Benefit #1: When you sell your home to your S corporation you retain all the benefits of your home-sale exclusion and avoid taxes up to $250,000 of home-sale profits. ($500,000 for a married couple filing jointly.) We’ll give you all the details when you read the full article.
Benefit #2: You’ll avoid the adverse effects of ordinary-income treatment on the sale to a related party (to the extent you can exclude any gain by using the home-sale profit exclusion). You’ll get the whole story when you read the full article.
Benefit #3: Your S corporation receives a stepped-up basis equal to the price it paid you for the property. The higher basis increases the S corporations depreciation deductions which flow to your personal tax return. It does this via the net income (or loss) reported on the K-1. Want more information? Read the full article.