Indiv into Corporation - 90 day seasoning

[Jason S.]

I hope some of you tax experts and/or experienced ones can assist me in how to properly fix this problem.

This is a California Property so it also involves the CA Withholding issues...

A friend bought a fixer SFR in his personal name but want to sell it under his newly formed corporation. He said he feels he will be taxed too much given his current personal income bracket.

Purchase Price - $80,000
Re-hab - $20,000 raw cost billable at $40,000 to his licensed contractor company
Re-sale - $145,000.
Owned for 90 days as of today.
Buyer will likely be FHA buyer.

What's the best way to transfer into the corporation?
Is there a way to do it and maintain seasoning in order to not have to justify to FHA the over 20% profit?

Should he transfer it to the corp at the $120K value (80K acquisition + billable re-hab) and then re sell it as the corp for less than the 20% increase per FHA rules?

Please advise - the rule of thumb is that whatever is done must be 100% above board - no pushing the line at all - just a legitimate and reasonable strategy.

Thanks for your input - its needed.