Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 05-31-2012, 12:02 PM
TaxGuru's Avatar
Tax Guru
 
Join Date: Jan 2007
Location: New Jersey, USA
Posts: 2,417
Blog Entries: 3
Are there any disadvantages for an S Corporation to own a taxpayers primary residence?

There are 2 main disadvantages of using an S Corporation to buy a shareholders (taxpayer) principal residence. These are as follows;

1) According to a recent IRS Court Ruling, the shareholders of an S Corporation "cannot claim the home buyer credit on the purchase of a new residence." The Courts held that the tax credit can be claimed only on a home owned by an individual not a corporation

2) The S Corporation cannot exclude any of the gain on the sale of the home. The income tax exclusion of the gain of up to $500,000 of profit is restricted to only individual taxpayer's.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.


Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Primary Residence then Rental tadelstein Homeowner Tax 8 07-25-2011 07:37 AM
Renting my primary residence dignot Homeowner Tax 1 07-21-2009 02:03 AM
Renting primary residence johntax Rental Real-Estate 3 07-19-2009 04:23 PM
deductions for rental, now primary residence askc Rental Real-Estate 1 02-15-2009 11:59 AM
Primary Residence julioseventh Homeowner Tax 0 02-12-2009 04:58 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.