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