From: "JD" 
Newsgroups: alt.building.realestate
Subject: Re: Buy Building and Lease to One's Own Business
Date: Tue, 19 Aug 2003 00:17:33 GMT


"Alan Bell"  wrote in message
news:76e%a.24377$2x.2088@rwcrnsc52.ops.asp.att.net...
> I have heard of situations where a small business owner will buy a
building
> and lease it to his own business rather than having the business buy the
> building. Can someone explain the business principles behind this? Is it
all
> a matter of taxes (and therefore useful or not depending on one's tax
> situation), or is it something else?
>
> If there is a more appropriate newsgroup for this, please let me know.
>

AFAIK, the advantages only come into play if your business is a separate
entity -- Inc, LLP, etc.

If that's the case, the reasons can be taxes, liability, asset protection,
ownership retention in the event of sale (of the business), etc. Remember
though, the moment you receive rental income, you have created another
business.

I'm sure there are much better groups for this. Try
misc.entrepreneurs.moderated