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Lev
Lev, Tax Advisor
Category: Tax
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Experience:  Taxes, Immigration, Labor Relations
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If i transfer my interest in an investment property to a company

Resolved Question:

If i transfer my interest in an investment property to a company (INC. or LLC.) and then the property is then sold, does the INC or LLC have to pay capital gains taxes or any other type of tax on the proceeds from the sale of the investment property? if so or if not what type of tax would have to be paid?
Submitted: 8 years ago.
Category: Tax
Expert:  RD replied 8 years ago.

Is this wholly owner corporation or LLC? Is the corporation a C Corporation?

Customer: replied 8 years ago.

Please reply and let me know the tax implications for each type please

owen

Expert:  Lev replied 8 years ago.

LLC or S-corporations are not taxable entities - any income (including capital gain from the sale of the investment property) will be passed through to members and will be taxable on individual tax returns based on total income, filing status, deductions, etc. - up to 35%.

 

If that is a long term capital gain (for properties held more than a year) - the reduced tax rate would apply - 15% if the taxpayer in 25% tax bracket or higher, and zero (for 2008) if the taxpayer if 15% tax bracket or below.

 

C-corporation would pay its own income taxes based on corporate tax rates based on taxable income:

below $50,000 - 15%
between $50,000 and $75,000 - 25%
between $75,000 and $100,000 - 34%
between $100,000 and $335,000 - 39%
between $335,000 and $10,000,000 - 34%
between $10,000,000 and $15,000,000 -35%
between $15,000,000 and $18,333,333 -38%
above $18,333,333 - 35%

 

Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29573
Experience: Taxes, Immigration, Labor Relations
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