It seems that the times dictate the questions have had a couple looking at having an S corporation to buy your main home.
This has a few tax disadvantages. First off shareholders cannot claim the home buyer credit on the residence, according to the Tax Court. They stated in a case where a couple had their wholly owned S corporation to buy the home they used as their principal residence. The credit can be claimed only on a home owned by an individual, not a corporation (Trugman, 138 TC No. 22).
Secondly, nor can the S Corporations exclude any of the gain on the sale of the home. The income tax exclusion of up to $500,000 of profit is restricted to individuals only. Note: the home sale exclusion can be claimed if the home is owned by a trust that is treated as owned by the individual who set it up (a grantor trust). In that case, the individual is deemed to be the owner of the home for tax purposes.
Thirdly, S- Corporations are not eligible for the Illinois Homeowners property tax exemption.