The Reference Section

A collection of wealth improvement articles

BUSINESS: Who should own our business building?

Question: Should my corporation own our business building or should I own it personally?

Answer: If your business is incorporated, it is often a good idea to personally own the real estate occupied by your corporation.

If appreciated real estate is sold by a regular corporation, the gain will be subject to double taxation if the corporation distributes the money to you. However, if you own the real estate personally, there is no double taxation. Though the double taxation does not apply to S corporations, there can be problems when an S corporation sells its operating business and its real estate.

If you personally own the property, you can lease it to the corporation.

There are non-tax advantages of personal ownership of business real estate as well. Discuss the facts with us and your attorney before you buy business real estate or change the form of ownership on real estate you already have.