My family has an S-Corp. It is real estate holdings consisting of approximately 30 acres and worth $300000 tax value. The business operates at a lost each year and does not make any money, however this year we sold 1.5 acres for $15,000 or the tax value of the property and we are NOT distributing money to shareholders. We simply converted the 1.5 acres to cash ($15,000)and the value of the property is equal to the same except that we are less 1.5 acres and we have cash instead of the acreage. We want to confirm that no taxes are due on the sale to shareholders since we are NOT distributing the cash.
