AboutRichard Fritzler Expertise Specializing in Business and Corporate taxation. Comparing the advantages and requirements of different business entities, such as Sub-S Corporations, LLC`s, Partnerships (Both Limited and General), Doing Business as a Sole Proprietor, or Using a C-Corporation. Issues regarding K-1 distributions, 1040, schedule C, 1120, 1120s. Are you considering domiciling a Corporation in a low tax state? I can review the benefits and misinformation that exists.
Experience I have been in the business of assisting business owners in reducing their taxes and liability since 1986. The company is Owelesstax, incorporated, at www.owelesstax.com
Organizations National Small Business Owners Association. Publications Contributing author to "The Corporate Standard Newsletter".
Publications Contributing author to "The Corporate Standard Newsletter".
Question I want to transfer title (car) from S-Corporation to my name. The owners of the corporation me and my husband. There is a loan on the car for $28,000.00 and the FMV of the car is also around $28,000. Then I want to liquidate S-Corporation. What is the best way to do it, and what taxes I should pay on the transaction with the car (like sale tax in NY).
Answer In order to transfer title you'd have to get permission from the lein holder. they might not allow it. But since you are probably personal guarantors they have no downside to allowing it. Yet they may demand payoff.
I can't say whether NY has a "Sales Tax" on private party auto sales. But they may build in a "Use Tax" into the registration of the vehicle; either way, your local DMV or possibly the NY DMV Website may be able to accurately tell you exactly what it will cost.
Although you are asking this as if these need to be separate transactions, The vehicle is simply an asset that you were planning to distribute along with any others out of the corporation at liquidation.
This might be the best approach to use with the lender: "We are closing the S-corporation that holds title to the car, how would you like us to transfer the title to us personally?"
That kind of eliminates the "We don't want you to transfer the title" option from the lenders choices.
Richard Fritzler
www.NevadaCorporateServices.com
phone 800 590-6612
