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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Try a JV if Corp isnt ready Posted by Travis-CA on October 10, 2003 at 9:37 PM In Reply to: 3.3% withholding....will this work?? posted by zachary on October 09, 2003 at 11:15 AM : Ward, : just selling my first preforcosure....escrow will be opened today. : Currently holding title in a trust with me as the trustee and as beni. : I am forming my corp right now and should have my EIN and bank account opened within a week and a half... : I was going to assign beni. to my corp before closing, but : I talked to the state frnachise tax board yesterday and they told me that with an individual as trustee I will have to pay the witholding regardless of who or what the beni is.... : They suggested that I deed to the corp right before closing.... : I am adding an addendum to the cotract that says the seller is: : me as trustee, and/or my corp. : : questions: : 1. do I tell the escrow officer up front? : 2. should I do it in written escrow intructions stating that on or before the day of closing title will be deeded to the corp and that the corp will deed it to the buyer? : 3. do you think this will throw the lender for a curve? : 4.should I just wait and pull this out at the last minute?? : OR...... : 5. Should I change the trustee and beni to my corp (in a few weeks when I get it together) and then sell it out of the trust still... : I'm liking #5....seems the easiest..... : any thought would help a ton.....desperatly don't want to let CA have my money to play with until april :-) : : thanks : Zachary If your corporation is not set up yet, I think you can use a Joint Venture to obtain the multi party exempt status and avoid tax. Travis Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : Ward, : : just selling my first preforcosure....escrow will be opened today. : : Currently holding title in a trust with me as the trustee and as beni. : : I am forming my corp right now and should have my EIN and bank account opened within a week and a half... : : I was going to assign beni. to my corp before closing, but : : I talked to the state frnachise tax board yesterday and they told me that with an individual as trustee I will have to pay the witholding regardless of who or what the beni is.... : : They suggested that I deed to the corp right before closing.... : : I am adding an addendum to the cotract that says the seller is: : : me as trustee, and/or my corp. : : : : questions: : : 1. do I tell the escrow officer up front? : : 2. should I do it in written escrow intructions stating that on or before the day of closing title will be deeded to the corp and that the corp will deed it to the buyer? : : 3. do you think this will throw the lender for a curve? : : 4.should I just wait and pull this out at the last minute?? : : OR...... : : 5. Should I change the trustee and beni to my corp (in a few weeks when I get it together) and then sell it out of the trust still... : : I'm liking #5....seems the easiest..... : : any thought would help a ton.....desperatly don't want to let CA have my money to play with until april :-) : : : : thanks : : Zachary : If your corporation is not set up yet, I think you can use a Joint Venture to obtain the multi party exempt status and avoid tax. : Travis Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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