LP With S-Corp As GP For Flipping. Is This Correct?
I am forming a company with 3 other people & need to know the best way to structure it.
We will be rehabbing and selling homes. I have been instructed that a LP with a S-corp as the GP is the best for asset protection and tax purposes.
I am under the impression that all 4 should be incorporators of the S-Corp but confused about the LP.
If my s-corp is the general partner who will be the limited partner? Should it be one of the 4, all 4 of us, or something totally different?
Any help given would be greatly appreciated, Thanks
In a nutshell for a residential rental property, depreciate property improvements (not land) using adjusted cost basis over 27.5 years. The IRS Pub has a table to show you how much depreciation to take each year or partial year your property is in service.
All the details and even more that you need to know about depreciation is available free from the IRS.
Publication 946, How To Depreciate Property
I think after reading that I will definitely understand depreciation. Thanks