Sell Primary Residence To S Corp
According to Tax Reduction Institutue, you can sell your primary residence to S corp. There are 2 benefits of selling primary residence to S corp
1) let say you are not ready to sell your primary residence to third party to claim 250K exclusive gain, but you are almost run of time (living 2 yrs the past 5 yrs). This strategy allows you to claim the 250 exculsive gain.
2) Increase your depreciation basis.
Question:
How can I sell primary residence to S corp? Do I need to use escrow/title company or transferring the deed using land trust is sufficient?
You are confused about the timetable. There is no five year limit on occupancy. The two of five year clock is a "lookback" starting on the day you sell, then looking backward five years.
You can live in your primary residence for 20 years and as long as you have owned and occupied 2 of the 5 years prior to the sale, you qualify for the capital gains exclusion.
I do not plan to move back to the property and I do not need cash. The book suggested this strategy to increase the property basis by using 250K exclusion. Once the basis increase, depreciation will be higher and future gain will be less. The author of this book is a CPA and lawyer. I can ask him, but I thought I ask second opinion.
I suggest you re-read the posts above and then talk to an INDEPENDENT CPA ot tax attorney who is familiar with RE tax laws. Based on the facts you presented, this strategy will not work as advertised.