“What Happens When You Die
and Your S Corporation Owns the Rental?”
To get my complete article
with all the details…
Benjamin Franklin once wrote “There is nothing certain but death and taxes.”
But in this article of the Tax Reduction Letter, I’ll tell you why you should see your tax advisor before you kick the bucket.
Here’s the story:
There are possible benefits of selling your home to an S corporation that you create, in order to …
Preserve your $250,000/$500,000 home-sale federal income tax exclusion
Convert the home into a rental property
Increase the depreciable basis in the rental property by the tax-free home-sale exclusion
Let’s say you’ve done that.
Your old home is now a rental property
inside your S corporation.
Question
If I create an S corporation, sell my home to that S corporation, and then rent the home to a third party, don’t my heirs lose the step-up in basis on the rental home when I die?
Technically yes, practically, no. I’ll explain this paradox in detail (and it is important!) as you’ll see in my new article.
CLICK HERE to read my completely new article titled:
“What Happens When You Die
and Your S Corporation Owns the Rental?”