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S CORP DISTRIBUTION OF APPRECIATED ASSETS

  • 1.  S CORP DISTRIBUTION OF APPRECIATED ASSETS

    Posted 09-25-2018 12:08
    I have a client in NYC that is a manufacturer and converter. The business operates as an S corp, In addition to the business the corporation owns the real estate where it operates. I was not involved with that set up as I was not the accountant at the time . I would like to separate the real estate from the business. I understand if they distribute the real estate to themselves or to an LLC that it will create a massive gain. My question is can they transfer the real estate to another S corp that is wholly owned by the same partners without a triggering a taxable event.

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    Gabriel Bentovim
    HOFFMAN & BENTOVIM, CPAs PC
    Commack NY
    631-499-1500
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