- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
C-Corp Help
Posted on 8/5/13 at 1:53 pm
Posted on 8/5/13 at 1:53 pm
Got a question about corporations and liquidations.
Here is the scenerio: Got a C-corp with 5 equal shareholders. Assets are around $300,000 with 75% of this being land. Shareholders are getting old and would like to sale the land.
Question: Is there a way to avoid doulble taxation of the gain on the sale?
I have researched liquidations but if I understand it correctly, the tax on this is the same as selling the assets through the corporation. Am I missing something here?
Thanks for the help!
Here is the scenerio: Got a C-corp with 5 equal shareholders. Assets are around $300,000 with 75% of this being land. Shareholders are getting old and would like to sale the land.
Question: Is there a way to avoid doulble taxation of the gain on the sale?
I have researched liquidations but if I understand it correctly, the tax on this is the same as selling the assets through the corporation. Am I missing something here?
Thanks for the help!
Posted on 8/5/13 at 2:27 pm to crazycajun10
I would say pay dividends but that wouldn't work, it would just be at a lesser tax rate.
You could, and I'm not 100% on this, decrease your share of ownership in your corp.
Entry would look something like
DR: Cash 60,0000
CR: Investment(C-Corp) 60,0000
If I remember correctly that's tax free, but I don't know if it works with C-Corps.
You could, and I'm not 100% on this, decrease your share of ownership in your corp.
Entry would look something like
DR: Cash 60,0000
CR: Investment(C-Corp) 60,0000
If I remember correctly that's tax free, but I don't know if it works with C-Corps.
This post was edited on 8/5/13 at 2:28 pm
Posted on 8/5/13 at 3:22 pm to crazycajun10
Getting property out of a corporation is almost always a taxable event. The corporation has to not have and earnings and profits from which to pay dividends. The shareholders need more adjusted basis in the corporate stock than the FMV of the property being distributed. Otherwise, there will be some income recognized.
Popular
Back to top
Follow TigerDroppings for LSU Football News