Client has S-Corp and all income flows through to him annually (single member) including capital gains on stock sales in brokerage account which were purchased with after-tax money. Now he wants to transfer account to himself. Does this initiate a taxable transaction? He has personal account with same brokerage so they just moved it. Nothing was sold.
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Interesting scenario. Who purchased (owns) the Investment Account?
Do not know if this would be related to your scenario but you can decide.
https://corporatedirect.com/asset-pr...-paper-assets/Last edited by TAXNJ; 06-21-2021, 03:09 PM.Always cite your source for support to defend your opinion -
I believe the question based on the facts is
"How can I distribute corporate assets to a shareholder without it being reported as a distribution, removing the asset from the corporation"?Uncle Sam, CPA, EA. ARA, NTPI FellowComment
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How the asset was created may matter, personal money put in Corp as a loan or capital investment or from profit over the years that was not distributed. If a loan, the initial loan basis would be reduced first and any excess would be a distribution. If from Corp earnings over the years it would be a distribution. Both of those issues would be no tax unless basis is exceeded for this or other reasons.Last edited by BOB W; 06-23-2021, 09:37 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
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Thank you All. Question answered.Comment
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