Tax Benefits of Creating a Real Estate Investment Trust: Holding Real Estate in a C-Corp?
From a tax perspective, conventional wisdom
discourages owning real estate in a C-Corporation.
After all, why pay corporate tax rates when you
can shield yourself from personal liability and
corporate tax using an LLC? However, owning
real estate in an LLC gives rise to a host of other
questions such as: how could one utilize an LLC
to bring in thousands of marginal investors? Are
potential real estate investors going to be deterred
due to non-resident state filing requirements? Will
tax exempt investors be deterred due to Unrelated
Business Taxable Income (UBTI) generated from
owning leveraged real estate through an...