this post was submitted on 16 Jan 2024
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My friend owns three houses, the one he lives in and two he rents. He incorporated for tax purposes. Your saying he can't own the rental property because he's now taking advantage of the tax laws?
You mean to say your friend incorporated for tax purposes because owning three houses would've been resulted in being taxed at a higher rate? That should be evidence enough.
Unrelated but related: shell companies for the purposes of evading taxes should also not be an acceptable practice.
That and as a real estate agent in Southern California it helps with his tax burden when selling houses near 1M. If the commission goes to his corporate account pays himself a taxed salary it's less than the taxes for the full amount. The rental is more of a long term investment than a profit from rent.
Limit it to corporations of a certain size then. It's not people like your friend that are doing the bulk of the damage. It's large corporations buying up entire neighborhoods to rent them forever.
That’s one persons opinion, but yes that’s what they are saying