Legal Question in Tax Law in California
Disolvement of Corporation
Yes my question involves both realestate and taxation, so I thought to ask a tax lawyer.
My three sisters and I are part of a california based corporation along with our two uncles. We are all looking to disolve this corporation where our uncles would buy us out where each of us would get 1/4 of 1/3 of the cash value of the three properties of this coporation.
Is there any way we could get the value or even have them purchase some land for each one of us, so we would not have to pay ''capial gain'' and ''state tax''? Also would this sum of money influence are personal income greatly moving us into a higher tax bracket forcing extensively high taxes?
Thank you
1 Answer from Attorneys
Re: Disolvement of Corporation
It sounds as if the corporation owns the property, and you would be selling your share of the corporation back to the others. If that is the case, you are not selling property on which you can defer capital gains tax, you are selling your shares of the corporation. That will subject you to capital gains taxation, and buying another property will not save you. The capital gains tax rate is only 15% (federal) right now.
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