Posted by Millie I. on April 21, 1999 at 01:14:42:
Mike,
Why don’t you call IRS and get the answer from the horses mouth.
Millie I.
Tax consequences. Deed from Corp. to myself?? - Posted by Mike
Posted by Mike on April 20, 1999 at 20:05:29:
Hi.
Myself and another person formed a corporation last year. I have good credit, he doesn’t. We bought and rehabbed a house and now it looks like a refinance may be in order and then a L/O sale. However, in talking with banks, the best bet to refi. this place will be for us to deed the bldg. into my name.
My question is what are the ramifications of such an action. In particular, I’m concerned about tax consequences. My attorney there’s really no legal issues to be concerned about.
Any advice?
Thanks.
Re: Tax consequences. Deed from Corp. to myself?? - Posted by JHyre in Ohio
Posted by JHyre in Ohio on April 21, 1999 at 10:25:14:
If you are going to personally sell within the year, it doesn’t really matter, because you’d have realized gain on that sale anyway. In fact, if your personal rate is higher than the corp’s rate, you may wish to pump the price up & keep the gain in the corp…assuming you intend to split the gain with the other shareholder in any event.
John Hyre
Re: Tax consequences. Deed from Corp. to myself?? - Posted by Bud Branstetter
Posted by Bud Branstetter on April 21, 1999 at 02:18:06:
If you sell to yourself without gain(includes fix up) then your corporation would’nt make money on it and no tax due. If you depreciated it which you probably shouldn’t have then you will have to recapture that.
Is he going to be on the hook (cosign)for the note? Are you going to deed the property right back to the corporation.