Restructuring a Property before sale

[Alda Watlington]

I have a property that I deeded to my S-Corp, my accountant didn't advised an LLC. We want to sell but the Capital gains are very substantial, my accountant didn't offer any other advice. We don't want to do a 1031, I am looking for suggestions from a CPA on the structure or cost segregation.

[Michael Plaks]

Quote from @Alda Watlington:

I have a property that I deeded to my S-Corp, my accountant didn't advised an LLC. We want to sell but the Capital gains are very substantial, my accountant didn't offer any other advice. We don't want to do a 1031, I am looking for suggestions from a CPA on the structure or cost segregation.

1. If your accountant endorsed an S-corp for a rental property, he needs to be replaced with someone who understand real estate, ASAP. 

2. S-corp is not a Halloween costume. You can't simply change into it and out of it at will. There're tax consequences, and they have to be examined if the property has indeed been transferred. 

3. Timing and numbers matter a whole lot. You said nothing about when things happened or the numbers involved.

4. Cost segregation before sale will not help you if you are selling outright and not doing any tax deferral strategies such as 1031, an installment sale (aka owner financing) or reinvesting into an opportunity zone fund. The latter does not help much until 2027 though.

Maybe I convinced you that you need an expert, not some random generic online advice. The difference is similar to FSBO vs Realtor in your profession. Have you worked with sellers who were previously "coached" online on how to DIY?