RE: The Tax Holy Grail for the Whale Investors- Orginal Post was incorrect

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The Tax Holy Grail for the Whale Investors- Orginal Post was incorrect

in tax •  8 years ago 

Some questions from Reddit:

"If the corp then cashes out and pays you, then wouldn't that just count as normal income then? Seems like this would change it from a capital gains income to a normal income which would be a bad thing."

"If the corp then cashes out and pays you, then wouldn't that just count as normal income then? Seems like this would change it from a capital gains income to a normal income which would be a bad thing."

Any thoughts?

tax
8 years ago by

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      ·  8 years ago 

    If it is an s corp and they sell the property, and recognize a capital gain it flows back to the shareholder as a capital gain, anything sold under the basis it would be treated as a distribution of capital back to the shareholder.

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