Avoiding the 3.3% advance withholding...
In Reply to: holding title posted by bob on June 28, 2011 at 7:32 PM
The problem with just using the Title Holding Trust (THT) by itself is that that routine doesn't qualify for an exemption from CA's advance grab of your state income taxes at the close of your resale escrow.
I agree that coupling together two THTs in a partnership is a tad more paperwork, but the year-end, tax filing routine is exactly the same as with a trust.
The reason that other bidders are still using the single THT is that they'd prefer to prepay their state income taxes rather than spend a little effort learning how to become exempt.
: any other ways to take title besides the Calif Gen Part that might be a little easier? I have various investors I team up with, and the paperwork and tax filing with the partnership is a lot of work, seems like at the sales I hear buyers taking title in a trust, any ideas would be welcomed
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