Today TaxMama hears from Ronald in Tucson, AZ who asks: “Is it legal to sell my residence to my C corp and be exempt from capital gains tax?”
OK, my friends, this is one of those questions we tax professionals look at, and cringe!
Let me try to answer this one, briefly. OK?
Yes, it’s legal.
No, it won’t make the sale exempt from taxes.
In fact, it’s going to cost you SOOOOOO much more than you can ever expect.
I can’t even tell you all the issues something like this touches on, but briefly, related party transactions and double taxation come to mind.
Generally, corporations are the last place you want to hold real estate.
So, don’t do that. Please. Get help to do some planning if you want to mess around with clever ideas.
And remember, you’ll find answers to lots of questions about off the wall ideas and other tax information, free. Where? At TaxMama.com[Note: If you were subscribed to the e-mailed TaxQuips, you’d be getting other exciting news and tips. Please click on the subscribe link and join us.]
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