Posted by firefox on August 28, 2003 at 19:36:22:
He owns the complex in a C-corporation? Otherwise I don’t see what accumulated earnings have to do with anything.
If he doesn’t have a c-corp, here’s what I might offer if taxes and shelter rentention are an issue: a 30+ year fixed-rate lease with an option to buy on the best owner-financing terms you can get. Have an understanding (written into the option if necessary) that you will not exercise until after he dies. When he does die, his heirs will get a step-up in basis to fair market value; then you exercise the option. Neither he nor they will pay any tax on capital gain or depreciation recapture (as I understand it). Sweet.