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Loren
Loren, Attorney
Category: Legal
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Experience:  30 years experience representing clients.
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A C corp stockholder owns 100% of the stock in a company.

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A C corp stockholder owns 100% of the stock in a company. The company's only business is to lease out one building and the land it sits on. The stockholder wants to dissolve the business and continue to rent the building and land and report it on the schedule C. For corporate tax purposes, how is it treated? Also, I just found out the land is in the individuals personal name, and not the business name
Thank you for using JustAnswer. I am Loren, a licensed attorney, and I will do whatever I can to answer your question and provide excellent service.

Since the property is already in the shareholder's name, all that is required is an assignment of the lease from the corporation to the shareholder.

To avoid being accused of acting as an alter ego of the corporation and subject to piercing the corporate veil the shareholder and corporation may want to prepare and record quitclaim deeds to and from each other covering the relevant periods. Before that is done, though, the shareholder may want to have the transactions reviewed by tax counsel to confirm that they are not generating gains which could be subject to taxation.

I hope this is helpful. If you have more follow up questions please let me know. It is never a problem.

Thank you.

Loren
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