Multiple Business Shared Resources

Technical topics regarding tax preparation.
#1
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1017
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10-Jun-2019 4:20pm
Location:
WESTERN USA
Client owns five(5) S corps and one(1) Real Estate Holding LLC( rents buildings to his S corps). Client would like the LLC to buy common supplies, own the company vehicles, for all the S corp operating businesses as he believes there will be economies of scale.

Any tips or traps in such a shared resource setup? Ground rule will be any funds transfer must be through documented loans and supplies would be sold and vehicles leased to the operating companiess in a manner like an independent 3rd party transaction.
 

#2
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6036
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22-Apr-2014 3:06pm
Location:
WA State
Look at other transaction taxes in your state (i.e. sales tax, B&O tax, etc.).
~Captcook
 

#3
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1017
Joined:
10-Jun-2019 4:20pm
Location:
WESTERN USA
[quote][/quote]Look at other transaction taxes in your state (i.e. sales tax, B&O tax, etc.).

Good tip, sales tax would apply with no exemption for common ownership.
 


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