Hotline Services for Entities Owning Rental or Investment Properties

• In this area we will discuss the issues of proprietors holding title to real estate that they rent out to third parties or have purchased as an investment.

• The managers of an entity often feel their title issues are simple and they can take simply take title in the entity's name. This is generally correct, but it assumes that the entity is the proper kind to hold real estate. For example, a "C corporation" usually is not a good form to hold title for income tax reasons. The most significant issues for entities owning rental property are lawsuits by tenants and visitors. However, the entity must be properly formed, funded and maintained to limit liability.

• Entities often have multiple owners. With today's constantly changing trends, entities should also consider many other issues such as: possible claims by an owner's former spouse; management in the case of officer/manager disability; transfer of interests on death, particularly buyout terms; asset protection; pre-structuring for 1031 tax-deferred exchange; rolling over property tax bases, and many other issues. A Hotline consultation will address these and other pertinent topics.