Holdco (holding corporation)

Holdco — a holding corporation that owns your properties instead of you. What it buys: the 20–25% corporate income tax ceiling (vs the 35% top personal bracket), routine itemized deductions, separation from your personal balance sheet, and — the real driver — estate architecture: heirs receive shares (donatable in slices at 6%) instead of retitling each property through a settlement that can freeze assets for years. What it costs: incorporation and annual compliance (audited FS, SEC filings, ₱50–100k+/yr in practice), 10% final tax on dividends every time it pays you, and a young corporation’s thinner bankability. Timing math is Level 4’s job (4.6); the option enters the map here.

First used in: 3.10 · RE tax and structures