Quit Claim From S Corp To Own Name And Back
I need to QC my duplex to my name for refinancing purposes and then back to my S Corp after closing. Does that trigger a taxable event?
I need to QC my duplex to my name for refinancing purposes and then back to my S Corp after closing. Does that trigger a taxable event?
I have done that with all my other properties. Seems as if refinance with stated income is the problem.
Bank will not refinance with 80% cash out in a corporate name so I have to qc to my name for closing.
Can you direct me to an IRS source for why S corp is taxable but not LLC?
Thanks very much!
Each shareholder in an S corp has tax basis in their stock. Contributions to the corp and their share of corporate income increase the basis. Distributions, losses and nondeductible expenses decrease the basis. Any distribution to a shareholder over & above their stock basis is capital gain. Distribution of appreciated property can also trigger gain within the S corp.
You should probably seek legal/tax advice professionally before pulling any trigger...just my 2 cents...
Thanks for your replies. I am in touch with my attorney and CPA.