Tax issues on corporate owned property

[Jake Hancock]

Hello all,

I have a dilemma involving tax issues on a property I own.

In 2010, I purchased a single family residential property. It was purchased by my (solely owned and managed, I have no other employees or officers) Tennessee C-corp, so the deed is titled to my business. In 2011, I moved into the home to renovate it. One thing turned into the next and here I am, still living in it in 2018. Within the next year or so, I would like to sell it and I don't have a clue of the tax implications.

My c-corp is still active with the state, however I have not conducted any other business under that name for years and no longer have a bank account under that name, though I suppose I can always open a new one. I have lived here since 2011 as my personal primary residence, so going on 7 years, however the deed is titled to my business.

How should I proceed when I am ready to sell this property? Should I sell this property under the currently business deed-ed name, pay capital gains taxes on the sale, transfer the funds to my personal account, and then close down the business?

Should I quit claim the deed to my personal name or spouses name to first the deed out of the business, and then sell it? 

Is there a way to way to do the 1031 deferred tax deal, where I could sell this property, defer the taxes by purchasing a different one? Is this possible only under the current business and not a newly created one? (The deed is titled to a Tennessee corp, I would like to move Florida and create a new corp, dissolving this current one.

Does anyone have any suggestions on what to do? What is the best route to proceed?

Thank you for your time.

[John Thedford]

1031 is for investment property not your personal residence. If you maintain the ownership under the current name, move out, then lease it for some time, you could 1031 into another investment property.