Getting Appreciated Real Estate Out of C Corporations (Part I)

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By: Jeramie Fortenberry, J.D., LL.M. (Taxation)

When it comes to getting appreciated real estate out of a C corporation, there are no quick and easy solutions. But the tax problem usually gets worse if it is not addressed. The best time to deal with the issue is ten years ago; the second best time is usually now.

Fortunately, today’s market is generally favorable for moving real estate out of C corporations. Real estate values have dropped significantly in many markets. Although we are in what appears to be a recovery, the upward trend is relatively recent. In many markets, we may be as close to the bottom as we will be for some time. This gives taxpayers the opportunity to transfer real estate out of a corporation at a relatively low tax cost. If the business owners act now, future appreciation of the real estate as the market improves can escape double taxation.

To learn the three ways to deal with appreciated real estate owned by a C corporation, please fill out the form below.