Rental Property/ S Corp

[Brian EA]

Taxpayer reported his rental properties on his personal tax return for the last 15 years.
He has now decided to file them under his S Corp.
I could not find any information to substantiate this
Any advice or suggestion
Thanks
Brian

[Bucky]

Who holds title?

[Brian EA]

The taxpayer owns the property

[TAXNJ]

Real Estate in a Corp: see attached article if applicable to your scenario or not

https://www.therealestatecpa.com/blo...er-corporation

Also, have you looked in The TaxBook (section on S Corp) transferring property? There is information in that section.

[Lion]

You'll want to discuss with him WHY? (Maybe an extension until you have time to explain to him the pros, cons, and procedures.) Holding real estate in a corporation is usually a bad idea, because getting it out again is a taxable event. His insurance rates might go up. And, he does have to do all the paperwork to change the title, mortgage, insurance, leases, etc., to get all the appropriate paperwork in the name of the S Corp. Is he trying to get a little liability protection? A good insurance policy works for that. Maybe a SMLLC, depending on the state, so it's disregarded and reports on his 1040 Sch E. Did he act like the S Corp owned it during 2020, lease payments to S Corp, etc.? Or is he thinking about 2021? Read up, research, and book a consultation with him, so he can make an informed decision.

[Anarchrist]

https://rpwcpa.wordpress.com/2011/07/15/bob%E2%80%99s-top-10-reasons-to-not-own-real-estate-in-an-s-corporation/