Accounting question. Owning or putting it in a different business name.

Question

I am planning to buy a property for my business and wondering if it is best to own it with my business or should I create a different company for it. What are the advantages and disadvantages of owning it and seperating it?

Answer 1

If you're talking about real estate, you definitely don't want to put it into a corporation. To find out why, do as suggested and visit a CPA.

Answer 2

If you put it in your own company's name and develop it, you can deduct all the expenses for clearing, making ready for building, building, etc. to lower your profit from your existing business. Creating a new company would have the same deductions, but since you're not making a product or a profit yet, the expense deduction wouldn't have much impact.

Answer 3

The answer is "Maybe":  You should consult a local tax professional about this and all other aspects of running your new business.