Dear John:
I always recommend consulting a CPA or tax professional in a case like
this, but I doubt there is anything that can be done at this point to avoid
the high capital gains tax.
However, there is another issue you may not have considered--double
taxation. In addition to the tax your corporation will have to pay on its
corporate gain, you will be required to pay individual income tax on the
amount you receive from the remaining proceeds of the sale. Depending on
your personal income tax rate, you could possibly end up with less than half
of the sale price of the land!
Chrissie
Mould Chrissie Mould has over a decade of experience in business
administration and startup business consulting. She has helped
launch companies in multiple industries and has managed
corporate administration and governance for public and private
companies. She is an incorporation specialist with
MyNewVenture.com LLC. The company provides low-cost
incorporation services to entrepreneurs and small businesses.
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