A client called me the major tenant of his shopping center approached him about selling the center to the tenant. The client has taken loans and has negative capital but positive basis. He feels the taxes on the sale would be prohibitive. He want to offer them the possibility of leasing the center to them. But I thought it might be construed as a disguised sale. How long a lease should he propose that would satisfy the requirements. Please point out any other problems that i may run into.
Thanks,
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Michael Rubinstein
Michael D. Rubinstein CPA, PC
North Bellmore NY
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