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Liquidating S corporation with property

Business 2 views 3 answers
I have one house in a S corporation that was converted from a C corporation about 5 years ago. The basis of the house is 100k and the FMV now is around 900k. What is the best way to move the house to my own name? Do I liquidate the S corporation and what are the tax implications? Thanks.

Attorney Answers

3
Michael Potter ·
You have a couple of things to think about. First of all, the house doesn't belong to YOU. It belongs to The Corporation. The property has a large Capital Gain associated with it that is a 'long-term capital gain' which makes the tax consequences more favorable (lower rate). You'll need to take action to Dissolve the Corporation in accordance with the ByLaws of the Company. I'd sit down with a Real Estate Attorney or Corporate Attorney and sort out your options both in terms of the dissolving the corporation and properly reporting the capital gains.
0 upvotes
William Chuang ·
Talk to a knowledgeable tax lawyer and a CPA. It will probably be the best money you will ever spend.
0 upvotes

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