Capital Gains On Sale Of Property In An S Corp
We put our properties into an S Corp before putting them for sale. We had held one over a year and one less than a year before selling them. We sold both porperties before they were in the corporation for a year. How do we go about the cap gains.
both properties were put into the corporation in 2006 and sold in 2006.
1) Is one S/T and one L/T or are both now S/T. Do we use our purchase date or the purch date where we put it into the corp.
2) What form is used to report this on our corporate tax return?
3) Do we list expenses for the properties separately ( prop taxes, interest, permits etc) or do we add them to the basis since we paid most of these expenses before they were in the corp
4) What about the expenses we paid out of the corp? Capitalize to cost basis or expense in the year.
5) Any other advive regarding preparing the tax return.
Thank YOU!
Christien
I might suggest finding a good CPA that knows real estate, and let them handle both your personal and corporate taxes. There are far too many variables to be guessing at this. Believe me, it will be much cheaper in the long run.
Just my 2¢