My partner and I own a rental property. I am also forming an S-corporation for properties
I own.
Here are 2 situations that involve my initial question:
1. Rental Property owned with a Partner
* I have a rental property I own with a partner. Prior to leasing the property, we formed an LLC. However, the title is in both my name and my partner's name. The mortgage on the property is in my name only (my credit is better, so we were able to refinance it at a lower rate in my name only). Here, the tax preparation person suggested we put the title/deed in the name of the LLC as opposed to our names. He also suggested I may be at risk for liability since the mortgage is in my personal name.
2. Rental Properties owned by Me
I have 3 properties - one has the title solely in my name, the other two is registered in both my name and my wife's name. I am wanting to form an S-corp and place those 3 properties within the S-Corp. I spoke to a tax preparer who can form the organization. He suggested I would probably need to own the properties outright in order to "sell" the property to the S-corp to further limit my personal liability.
He also suggested that changing the title to the S-corp name would be necessary in order to properly identify the property within the S-corp as opposed to having the deed in my name. Currently, the property in my name is paid off, and the other two have mortgages.
Thanks in advance - any input on either situation is appreciated.
Read more: I have an LLC - should I have the title in the LLC name to help prevent personal liability?
