Posted by NHank on February 07, 2002 at 09:59:24:
My Dad has a 20+ year old C Corp. He used to be a lumber broker and was making big money in the 80’s. He extended credit to a large manufacturing company that burned down and was not covered with insurance. My Dad retired this year and is about to dissolve the old Corp. He said that that those old losses can be carried forward for something like 20 years (or something like that). (approx 1 million loss)
I have just started my first Rehab. I am smalltime but of course hope to grow. I understand that a new C corp would not be the way to go for a beginner but am wondering if these old losses could justify taking over the old Corp.
I may be way off base, but could those old losses offset RE capital gains?
Should I stop my Dad from Closing out the Corp?
Would it matter that the Corps. Business purpose would change?
Thanks!
(I believe that he is starting the process today or tomorrow)