Transfer of assets from S-corp to LLC
S corp has 2 shareholders -Shareholders formed an LLC to buy adjoining property -S corp has appreciated real estate- If the S-Corp transfers real estate to the LLC will this be a taxable event based on FMV
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BRAINDEAD
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04/21/11 8:43am PDT
Viewed by asker 01/23/12 8:14am PST
Viewed by asker 01/23/12 8:14am PST
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sjrcpa
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04/21/11 11:09am PDT
Maybe. It is a distribution of property (appreciated real estate) to the shareholders. This could be taxable. The shareholders then contribute it to a newly formed LLC; this is generally not taxable.
The more I know, the more I don't know.
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04/21/11 11:11am PDT
The solution
How do you propose to accomplish "If the S-Corp transfers real estate to the LLC"? Will the S-corp be disolved or will it become a partner in the LLC?
04/21/11 3:09pm PDT
Sorry marked solved by mistake
The S-Corp will continue to operate as a business
The S-Corp will not be a shareholder
04/21/11 3:49pm PDT
Latest post
Then yes, it is a taxable event. The S-corp will sell the assets at FMV and have gain.
