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[Alex Balashov]

Steve Totaro wrote:

> It is similar to forming a corporation that owns your house and
> generates revenue from you paying "rent" (mortgage) payments.  It is
> obviously a wash but your house is protected from any claims against
> you personally since it is owned by a total legally separate corporate
> entity.

I'm quite certain this is already obvious and will simply be interpreted 
as a tautological affirmation of the obvious, but such co-mingling of 
personal and business assets -- whether with an evidently fraudalent 
purpose or not as such -- will generally not survive the "test of 
reasonableness" that must be satisfied for corporate liability to not be 
pierced.

In other words, if you simply pay for your house in this manner, and 
then you declare bankruptcy or are sued by creditors or whatever, the 
courts will scavenge this sort of thing up as evidence that your 
corporate entity is a financial alter-ego to whatever degree, and 
declare that your house is actually, de facto, a personal asset and can 
be included in the asset classes potentially awarded by judgments to the 
plaintiffs.

-- 
Alex Balashov
Evariste Systems
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