Keep real estate separate from your business’s corporate assets to save tax

Keep real estate separate from your business’s corporate assets to save taxIt’s common for a business to own not only typical business assets, such as equipment, inventory and furnishings, but also the building where the business operates — and possibly other real estate as well. There can, however, be negative consequences when a business’s real estate is included in its general corporate assets. By holding real estate in a separate entity, owners can save tax and enjoy other benefits, too.

Dot the “i’s” and cross the “t’s” on loans between your business and its owners

Dot the “i’s” and cross the “t’s” on loans between your business and its ownersIt’s common for closely held businesses to transfer money into and out of the company, often in the form of a loan. However, the IRS looks closely at such transactions: Are they truly loans, or actually compensation, distributions or contributions to equity?