I have RE properties in my LLC, which I'd like to put into an IDGT. If the grantors pay income taxes on the IDGT, do they also receive rental income from the IDGT, or does all income stay inside the IDGT? Can one put properties with existing mortgages into an IDGT?
Yes, real estate can be held inside of an IDGT. The rental income would stay inside of the IDGT and the related taxes to that income would be paid by the grantor (assuming the grantor privilege has not yet been turned off). A mortgage can exist on the property held inside of the IDGT and may, in fact, be beneficial to offset rental income.
Great presentation, thank you!
I have RE properties in my LLC, which I'd like to put into an IDGT. If the grantors pay income taxes on the IDGT, do they also receive rental income from the IDGT, or does all income stay inside the IDGT?
Can one put properties with existing mortgages into an IDGT?
Yes, real estate can be held inside of an IDGT. The rental income would stay inside of the IDGT and the related taxes to that income would be paid by the grantor (assuming the grantor privilege has not yet been turned off). A mortgage can exist on the property held inside of the IDGT and may, in fact, be beneficial to offset rental income.