Land Trust

Anybody know the the real implications of using a land trust for mitigating taxes?

Is it a legitimate structure?

An individual informed me that title is not transferred traditionally within a land trust and thus taxes can be greatly minimized.

In mainstream accounting circles I have never heard of such a strategy.

Anyobody have experience with it or knowledge of its effectiveness?

Comments(4)

  • finniganps16th August, 2006

    The main poster on this topic left this site last week. My understanding is that it is a strategy that can work, but you will need professional assistance.

    A land trust has no tax consequences. It is a means of holding title and providing privacy with many additional benefits.

    I suggest you do a Google search on the topic. [ Edited by finniganps on Date 08/16/2006 ]

  • Belle_star12th September, 2006

    Finniganps
    I did conduct a search on google and all I received were subjective opinions that are trying to serve their own interests. I was wondering if there were any objective resources on the topic (IRS would be the best).

    Thanks.

  • mtnwizard12th September, 2006

    Belle,

    A land trust has many title-holding advantages but provides no special tax breaks of any kind. I place my properties into a land trust and take title in an LLC. Good luck.

    Wiz
    non-lawyer
    [addsig]

  • mtnwizard16th September, 2006

    On second thought, there is one tax break that comes with a land trust. You can defer capital gains taxes for years.

    Wiz
    not a lawyer
    [addsig]

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