1

I would like to execute a simple contract assignment (double closing) on a real estate deal. The initial title work came back an there is a lien against me personally for taxes owed to my state. I have a c-corp that I want to use in order to do the deal instead. I am the sole 100% owner of this c-corp. If I do the flip through my c-corp, will I have to satisfy the lien in order to do the deal?

  • 1
    I don't understand the question.... how is selling the property to your c-corp different than selling the property to someone else ? How should it get you out of a tax burden ? – xyious Nov 14 '18 at 15:39
1

Is the lien 'against you', or is it 'against your house'?

A lien is basically a right that the bank holds to prevent you from selling the secured property without their consent. So selling your house to a c-corp without disclosing that fact to the bank, would be illegal. Further, when the realtor does a title search on the house, they will still see the lien as existing, because the records would still show that the lien is in place.

In short, your method of trying to defraud either the state that you owe a tax debt to, or the person you are selling the property to, would not work.

Your Answer

By clicking "Post Your Answer", you acknowledge that you have read our updated terms of service, privacy policy and cookie policy, and that your continued use of the website is subject to these policies.

Not the answer you're looking for? Browse other questions tagged or ask your own question.