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Investors & landlords
You need to meet with a tax professional and have a one on one discussion of your goals and why you want to change the current structure.
I also agree that owing real estate in a corporation (or S corporation) is generally not a good move.
Transferring out the real estate to you and your husband (shareholders), will be treated as if you sold the property for FMV and you will trigger current tax.
This sale will be at the S corporation level and reported on your respective K-1 and then reported on your individual 1040. This is triggering tax implications in which you have no cash to pay the tax.
Don't do anything until you have discussed the implications with a tax professional and you understand the implications.
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
Also keep in mind the date of replies, as tax law changes.
‎June 12, 2022
2:32 PM