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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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Is deeding property from a family C corporation to a family

Customer Question

Is deeding property from a family C corporation to a family trust a taxable event in Kansas?
Submitted: 7 months ago.
Category: Tax
Expert:  Lev replied 7 months ago.
Yes - that will be reported a distribution to shareholders.For C-corporation - it is reported as the sale at the FMV,For shareholders - it is reported as dividends - up to the amount of retained earning and the rest will be reported as non-dividend distribution.
Expert:  Lev replied 7 months ago.
That is regardless how the property is used AFTER it is distributed from C-corporation.It is considered as distributed to shareholders and shareholders may transfer it to the trust after that.You might find helpful following article which discusses some tactics to Get Appreciated Real Estate Out of C Corporations.http://www.fortenberrylaw.com/appreciated-real-estate-corporations/Specifically if there will be large taxable income and it will be taxed twice..I appreciate if you take a moment to rate the answer.Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all tax related issues.