Is it okay to purchase property under other people's name?
Looking to purchase real estate but don't want to put under my own name. Can I establish an LLC and put the assets under the LLC? I want to reduce or eliminate my tax liability (both potential capital gain and rent collected). Additionally, other people cannot go after my personal assets. Asset Protection
Landlord / Tenant Lawyer
Dear asset protector:
An LLC may own property. Financial transactions designed solely to secret assets to fraudulently evade lawful judgments and liens, may be penetrated.
The answer provided to you is in the nature of general information. The general proposition being that you should try to avoid a bad outcome if you can.
2 lawyers agree
Lemon Law Attorney
You can form an LLC to buy proprty just like you could incorporate for the same reasons. Either way you would limit your personal liability.
You should talk to an accountant about the tax consequences of rent received by the corporate entity as well as any capital gains or losses generated. Talk to an accountant before you establish the LLC or corporation so you can plan out what you want.
You will not be able to eliminate all tax liabilities but if you plan ahead you can control or at least minimize any negative impact on your personal situation. But don't forget once you have that corporation or LLC it will now have to file a tax return, too. And if it is at all complicated, you would do well to pay an accountant for preparing that tax return, also.
1 lawyer agrees