Getting Appreciated Real Estate Out of C Corporations (Part II)
By: Jeramie J. Fortenberry, JD, LLM, WealthCounsel Executive Editor
Part I of this series discussed two strategies to get
real estate out of a C corporation: (1) distributions to
shareholders and (2) sales to shareholders or other
third parties. This article discusses the use of conversions
to move appreciated real estate from C corporations
into more tax-efficient business structures.
A conversion changes the tax classification of the C
corporation to either an S corporation or to an LLC.
This can avoid double taxation of future appreciation
in value and, in the case of subchapter S elections,
may avoid double taxation altogether.
To read Part II in this series, please fill out the form below.