Tax implications of transferring from C corp to a personal name?

5 Replies

Hello, looking for some advise. I purchased a Miami condo in my name, then transferred it to a C corp last year (I am the owner). Now looking to transfer back to my personal name. Any tax implications? 

Is it better to sell under Corp or under personal name? To further complicate this gas I am Canadian living in US on workVisa.  Would appreciate advise or referral to a good accountant. 

@Iryna Zhuk

Hi Iryna - It is normally not advised to hold property that tend to appreciate(ie. real estate) within a corporation. The good thing if any is that you caught the issue quickly.

Is the condo a personal residence or an investment property?
What is the basis in the property?(purchase price + improvements - depreciation)
What is the Fair market value of the property now?
Did you file a 2017 tax return for the corporation?

Do you also plan to go back to Canada anytime soon?
There are qwerky rules for internationals investing in the United States

The corp was opened in Jan 2018  and did not conduct any business.  I am sole owner if Corp. 

I will be closing the corp.

Condo was my primary residence wich I want to either sell or rent out. 

Transfer was done via Quit Claim Deed for $10.00. 

I was told by accountant if I do a Quit Claim Deed again and transfer it back to my name, there would be no tax implications for me. 

@Iryna Zhuk

I disagree with your accountant. I think the appreciation that occured prior to transferring title to you would be taxable to the C-corporation.
There may also a portion that is taxable to you as a distribution.

Hmmm, I was hoping to avoid any complications. Condo was purchased for 389,000 and quit claim deed to transfer to C corp was done at $10.00 (ten dollars). Now FMV will be about 20,000 higher due to improvements.

At this point I do not plan to return to Canada for at least a year and will be claiming taxes in USA, and $ 0 income for corp and $0 Canadian income.