3 ms·
Doesn't the subsidiary which owns the property still have to pay the tax for the property they own? I don't understand how this decreases total tax paid.
by dahfizz 5y ago
Doesn't the subsidiary which owns the property still have to pay the tax for the property they own? I don't understand how this decreases total tax paid.
- akiselev 5y agoThey still pay the annual property tax but avoid the real estate transfer tax and the speculative tax, which can be 5-10 years worth of the property tax.
- compsciphd 5y agomy guess: in some places there are "purchase taxes" on real estate. so if you don't purchase the real estate, just the company that owns it, you don't pay the purchase tax as the real estate itself never changed hands.
- joshlemer 5y agoYou avoid land-transfer taxes.