ways to get a property out of corporate ownership

[Tony F.]

Found an off market property in up and coming area. Owners are open to selling, but just came out that the property is owned by their corporation.

Their CPA says they will pay cap gains when the Corp sells, then they will pay income tax on the distribution, resulting it over 50% of sale proceeds going to Uncle Sam. Property is fully depreciated with a very low original purchase price, so high gain.

They want to sell the corporation to avoid this and only pay the cap gains, my attorney says no way (liability from unknowns, and we deal with the same when we want to sell)..

There must be a way to navigate this and only sell the asset??? Please advise. Thanks

[Ashish Acharya]

Originally posted by @Tony F.:

Found an off market property in up and coming area. Owners are open to selling, but just came out that the property is owned by their corporation.

Their CPA says they will pay cap gains when the Corp sells, then they will pay income tax on the distribution, resulting it over 50% of sale proceeds going to Uncle Sam. Property is fully depreciated with a very low original purchase price, so high gain.

They want to sell the corporation to avoid this and only pay the cap gains, my attorney says no way (liability from unknowns, and we deal with the same when we want to sell)..

There must be a way to navigate this and only sell the asset??? Please advise. Thanks

This is a pain. That is why we should rarely have RE in a corp. I would listen to your attorney.