Tax Law (Questions About Taxes)/Private

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QUESTION: Good Day,

My brother and I have inherited 100% of the shares of a C corp that contains property and cash in the bank.  The issue we have is how to remove the property from the C corp without paying the
built in gains tax.  Fair market value is roughly $250k and the accumulated appreciation is $54k and is depreciated out.  My understanding is the stock is stepped up but not the value of the
building, is that correct?  A stock sale is not possible, converting to a S corp and waiting 10 years for the gains to go away is a possibility and a 1031 exchange is another way to get rid of the real estate but the idea of paying 40% corporate tax and then another 20% on the dividend sounds revolting.

ANSWER: Would you try to fly a plane without a license?
Why try to be a tax geek without proper guidance?

Send me a new question and mark it private and I'd be happy to help you out of your dilemma



---------- FOLLOW-UP ----------

QUESTION: My brother and I have inherited 100% of the shares of a C corp that contains property and cash in the bank.  The issue we have is how to remove the property from the C corp without paying the
built in gains tax.  Fair market value is roughly $250k and the accumulated appreciation is $54k and is depreciated out.  My understanding is the stock is stepped up but not the value of the
building, is that correct?  A stock sale is not possible, converting to a S corp and waiting 10 years for the gains to go away is a possibility and a 1031 exchange is another way to get rid of the real estate but the idea of paying 40% corporate tax and then another 20% on the dividend sounds revolting.

ANSWER: Make a new question

Mark it private and il give you my contact info



---------- FOLLOW-UP ----------

QUESTION: Question about 1031 exchange with a property from a c corporation.  Does it have to stay a rental property or can it be converted from rental to personal residence?

Answer
Pa

Not the subject.    Private



But you can mark. It "private" so others can't read it

Don't reply to _this_ message.   Make a new one





Are you missing the suggestion to make a NEW question and mark it private - so I. cangive you My contact info ???


And the requirements for 1031 have to be like kind property,   But if you turn it into residential (what is original property??) and the. Use it yourself, it wouldiky be a dividend...   

But as I have said three times

Send a NEw question and mark it Private !  

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MEdusa

Expertise

Tax and general business including hospitality related (hotel mgmt degree and experience in industry prior to obtaining ms tax and cpa).

Experience

19 years cpa. ms tax. NOTE: My discussions are only a general information and do not constitute tax advise without entering into a specific agreement and executing an engagement letter; This free chat is nothing more than general information and should not be construed as tax advice nor does my response or replies imply an agreement to provide client specific advice or other guidance for purposes of avoiding IRS tax or penalties and should not be relied upon without your own validation and confirmation of the how the discussion may fit your facts... Not having all the facts and/or not having a direct client relationship prevents me from providing the most accurate replies as possible and I highly suggest using a local CPA to provide you with written advice and guidance. Taking matters into your own hands is much akin to trying to land an airplane without a license. It is easy to FLY a plane, but LANDING is when critical experience is key. In short, caveat emptor; do your homework and don't just rely on free chat board advice anywhere, anytime.

Organizations
AICPA, CSCPA (Ct society), National Tax,

Publications
a bunch.

Education/Credentials
MS tax and other post graduate coursework

Awards and Honors
variety including Summa Cum Laude

Past/Present Clients
I don't disclose or kiss and tell

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