Selling your house

[JON]

Corp is done.

Income earned by the corp, rental, will be taxed at the highest corporate rate because your a personal holding company. You may delay the reporting of the income into 2009 or beyond.

If you liquidate the corporation in the current year the stockholder gets the money offsets his basis and for federal income tax purposes has the 15% rate. If he waits until next year or the year after will that rate still be there.

If you think rates are going down then delaying may be worth it. If rates do not go down the delay costs you money.

[Burke]

I believe there are companies that will purchase stock of corporations holding real estate.Secondly this would probably work better with a taxpayer later in years so on passing the stock gets a stepped up basis. May be a way to devise assets to beneficiaries.

I think I see where you are going with this. Corp buys house, owner/seller gets tax-free $$$ due to 121, corp's stock is then sold to outside party, and stockholder gets $$$ for the stock @15%, corp now has new owner and capital asset of property. 1244 would apply, no? And 1239 would not void 121 election? Hmmmm. Would like to see CCA on this one.