All Forum Posts by: Jake Hancock

@Robert A Garcia I definitely learned my lesson. S-corp only? Or is an LLC suitable as well?

@Logan Allec I wish I could answer that question. When I purchased the property, I purchased it with funds from my C-corp bank account. The original purpose of this property purpose was for flip/investment purposes. I was ignorant to the dilemma I would be facing now. Obviously I shouldn't of had it deeded to my C-corp. Now, I'm trying to figure out how to resolve this mess.

@Dave Foster Thank you for your response. I understand that this situation isn't ideal, I shouldn't have made this my primary residence while it was deeded to my c-corp. The deed is in the c-corp name. It does have its own tax id and I have filed its own taxes, so it is it's own entity.

I purchased this property (I, as the sole officer of the c-corp) as investment property, for cash from a Fannie Mae auction. My end goal was to flip this property and sell it or drop it on a vacation rental program once complete. Since I was small time and was living 8 hours away, I moved to this property to accomplish that. The only thing that really changed was that 1) I was living here and 2) my renovation took multiple years longer than the initial plan due to changing circumstances.

If I sold the house today, and was not 1031 eligible, as it sits deeded to the c-corp, what would my tax liability be? Would it be 15% capital gains taxes on the total sale amount? Or the total sales amount less the initial purchase price? Do I add or substract the renovation costs, or do nothing with that amount?

If I transfered the house deed to myself or my spouse, what tax liability exists in this case? Would the c-corp pay capital gains on the market value of the house for "selling" it to myself? And then from there, I personally owe taxes on the home if I sell within 2 years of obtaining the deed in my personal name?

A little more info: This house was purchased for $40,000 in 2010. I will have put around $90,000 into the renovations when completed (4-6 months) and it will be all finished up.

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.