Specific Structures Part 2 (US Corporation)….more

So, as long as my previous post was on corporations, I did forget to cover another HUGE benefit of holding assets in one. Besides the asset protection feature, which is by far the most important one, there is a tremendous tax benefit to holding assets in a corporation. 

Using corporations to own homes, cars, boats, and high priced items is a trick the wealthy have been doing forever. As a matter of fact, the very first thing the wealthy do when purchasing a home, is figure out the best way to own it when it comes time to sell it. I have a couple client with good sized trust funds, and whenever they buy a home, it’s always the same thing. They ask me “whats the best way to own this house if I were to sell it in 10 years.” I almost always tell them to place it in a Nevada corporation, or some sort of offshore trust if they can afford the setup fees (which are next to nothing when you look at the savings)

The advantages of this are of course the asset protection, but also a huge tax savings. If you’ve ever sold a home, you know that taxes are several thousand dollars on the sale side, and the purchase side. When you’re dealing with a home in excess of $500,000 or $1,000,000, you know that taxes are gong to be a major expense.

However, taxes are really only accessed when the property is sold, eg: changes owners. If the home is owned by a corporation, and it comes time to sell the house, you don’t actually sell the house. You sell the shares of the corporation, and the net results is – the home never changes actual owners. It’s still owned by the same corporation, therefore no actual sale has occurred, meaning no taxes. All you do is sell your Nevada corporation to the buyer, who realizes it saves him a boatload of money as well. Sign over the shares at your lawyers office, and the new corporate owner now has a home in the name of his company.

This simple process will save you thousands of dollars when you sell your home. The cost to place your home in a Nevada Corporation is negligible compared to the savings you get here. Tips like this put actual cash in your pocket, in addition to protecting your home from any financial predators. Things like this are the simple tricks that have kept money in the pockets if the wealthy for generations. Take this tiny rule form their playbook and save yourself a bundle next time you sell a home.

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Tags: Asset Protection, corporation to own a home, estate taxes, home buying, home sales, nevada corporation, NV corporation, Private Banking, real estate taxes, reduce taxes, saving money, selling a house, tax reduction