How to Buy a House Through Your Business

Video Transcript

"Hello, my name is Alicia Lowther, Licensed Real Estate Professional with Realty Executives and I am going to discuss how to buy a house through your business. Depending on the line of work that you are in, it is possible to buy a home through your business as a deductible business expense. There are many factors to consider when doing so and I encourage you to speak to a real estate attorney for legal advice and an accountant for tax advice because there are both legal and tax implications. The first thing you need to do is determine the business use. If for example you buy houses on a regular basis to flip them or you buy property and rent it out, it is probably likely that you often purchase homes in the name of a corporation. There are other instances that you may be able to do so. For example if you are a home daycare provider and provide services through your home or if you are a hair stylist and you cut hair and style hair in your home those are potential examples of how you could buy your home through the business. I would like to point out that a corporation exists to separate your corporate assets and liabilities from your personal assets and liabilities so if you purchase the home in your corporation and suffer a business loss you could potentially lose your home. You will need to be sure to keep detailed records of all of the expenses associated with the purchase because your accountant will need those and also be aware that you will have to pay capital gains taxes when you sell that property. Lastly please remember to consult with an attorney and an accountant for advice. My name is Alicia Lowther, Licensed Real Estate Professional with Realty Executives discussing how to buy a business, a home through your business."