[quote=sdduuuude]Another reason to put the house in a corp is to shelter from property tax increases.
If you sell the company, which owns the house, it does not trigger a sale event on the house, so the property tax basis stays the same.[/quote]
By law, that’s not accurate. If more than 50% of corporate stock or ownership in an LLC is transferred (in a single year or cumulatively since 1975), and the corporation owns real estate in CA, that transfer must be disclosed and the property is re-assessed. As a practical matter, I don’t now how the state enforces this for foreign corporations, but for CA entities, it’s right on the tax return:
J 1. For this taxable year, was there a change in control
or majority ownership for this corporation or any of
its subsidiaries that owned or (under certain
circumstances) leased real property in California? . . . . . Yes No
2. For this taxable year, did this corporation or any of its
subsidiaries acquire control or majority ownership of
any other legal entity that owned or (under certain
circumstances) leased real property in California? . . . . . Yes No
3. If this corporation or any of its subsidiaries owned or
(under certain circumstances) leased real property in
California, has more than 50% of the voting stock of any
one of them cumulatively transferred in one or more
transactions since March 1, 1975, which was not
reported on a previous year’s tax return? . . . . . . Yes No
