Transferred S-corp To LLC. Taxable Event?

I have diferent opinions on this subject. can someone for sure tell me if transferring a property from an s corp to a llc where ownership is same IS a taxable event? thanks

Comments(7)

  • NewKidInTown327th April, 2007

    Maurich Inc, an S-corp, owns the property now. The S-corp is an entity that is not you. You want to transfer title to Maurich LLC, a different owner, also an entity that is not you..

    Tell me again how the owners are the same?

  • maurich27th April, 2007

    s corp technically different entity than llc. same ownership.

  • NewKidInTown328th April, 2007

    cj,

    The question is not whether a transfer can be accomplished, but whether the transfer would be a taxable event.

    Yes, if the transfer is a taxable event, then all the taxes you mention are in play.

  • maurich30th April, 2007

    okay guys, so lets keep this SIMPLE!.: my S-CORP transfers property ( legally, pays stamps, records deed etc) to an LLC. in both cases the OWNER is the SAME.

    is this a taxable event for the S -corp for that year?

    OR can we claim the transfer as just a shifting of asset from one entity to another under same ownership?

  • finniganps30th April, 2007

    It depends on the basis in the property transferred in relationship to the sales price. Seek professional assistance on this.

  • maurich30th April, 2007

    bargainking, i hope you are correct!. problem with uncle sam is, you cannot GUESS or take a crapshot. there has to be correct answer to this question. no two professionals i am talking to are agreeing with one answer......grey area?

  • maurich30th April, 2007

    where exactly do you ask the irs?. www.irs.gov does not seem to have the means to pose a question. thanks

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