Important Service Announcement: Based on user feedback we are not shutting down the TaxAlmanac.org website however the site is now an archived version as of June 2014. While all of the existing discussion threads and commentary will be preserved you will no longer be able to edit content, post to forums or create additional logins.

To join in on this discussion, you must first log in.

Discussion:C-Corp to S-Corp

From TaxAlmanac, A Free Online Resource for Tax Professionals
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.

From TaxAlmanac

Jump to: navigation, search

Discussion Forum Index --> Tax Questions --> C-Corp to S-Corp


Praheja (talk|edits) said:

10 March 2006
Have a client who, since 1990, is hold real estate in the C-corp and now wants to liquidate the property(s). In C-corp he will probably have to pay regular tax regardless of the holding period. Based on the holding period, will it benefical to convert this corporation to S-corp and then sell the properties?

Jdugancpa (talk|edits) said:

10 March 2006
It may be beneficial but he will have to hold the properties in the S corp for 10 years to avoid the Built-In Gains tax. If the intent is to liquidate right away, that will not be a strategy worth pursuing.

Moral of the story: Don't hold appreciating real estate inside a C corp.

Praheja (talk|edits) said:

10 March 2006
learn't the moral the hard way. thanks

To join in on this discussion, you must first log in.
Retrieved from "http://www.taxalmanac.org/index.php/Discussion:C-Corp_to_S-Corp"
Personal tools