Selling property to your own S-Corporation may be beneficial in some specific situations, like if you are trying to meet requirements for the two year rule ($250/500k exclusion), or if you are trying to take advantage of depreciation on appreciated property.

For example, say you lived in a property for three years, and rented it out for the next seven years - since you haven't lived there for two out of the last five years, you cannot sell the property as a primary residence to avoid the capital gain.

However, after moving out of the property, you sell it to your own S-Corporation, which allows you to exclude capital gain (up to $250k, $500k if married filing jointly) because requirements for the two-year rule have been met. The other advantage is you can have a new basis for depreciation on your appreciated property.

Selling to your S-Corp isn't for everyone though. You should avoid using this strategy if you cannot take advantage of the exclusion amount.

Check out Real Tax Tips at TReXGlobal.com to learn more about saving time and money on properties and taxes.
Be sure to try Simplify'em, the FREE Property Management Software from TReXGlobal.com.

Community Relations TReXGlobal.com
Simple FREE to Use Web Tools for Real Estate Investors