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Have a sub s corp rental properties fully depreciated wish…

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Have a sub s...

Have a sub s corp rental properties fully depreciated wish to do a joint venture not a sale or transfer of property.. How can this be done without triggering capital gains?

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

Want to combine stock of sub s fully depreciated rental properties with partner who is putting up liquid assets.. this is not a sale .. will it trigger capital gains and depreciation recoup tax???

Accountant's Assistant: Is there anything else the Accountant should be aware of?

Not really just suggestions on how to structure this transaction as a non taxable event

Submitted: 8 months ago.Category: Finance
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Answered in 11 minutes by:
11/15/2017
Financial Professional: Lev, Tax Preparer replied 8 months ago
Lev
Lev, Tax Preparer
Category: Finance
Satisfied Customers: 33,131
Experience: Personal Investment, Tax Preparation
Verified

If you choose to dissolve S-corportaion - assets will be distributed to shareholders and the gain of appreciated assets will be recognized.

If you want to avoid recognition of taxable gain - you will need to keep that S-corporation and to keep the property inside S-corportaion.

If you are inviting a partner - you will need to issue additional shares and sell these shares to the partner - so he/she will be a shareholder of S-corportaion.

In this case - we will not have any distribution.

Let me know if that will work for your purposes.

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