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Old 18-07-2016, 13:09   #16
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Re: OK, strange question perhaps - Taxes

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Originally Posted by a64pilot View Post
I just went through that and it depends on what your basis is in the home, etc.
Mine was a little more complex as I owned the corporation that owned the house and land, I was told that I "would be alright" by my CPA, only to have the biggest tax bill of my life, his definition of alright and mine vary I suppose
The tax break on a residence is when its in the name of the individual or married couple taxpayer, not a corporation nor a trust funds, nor anything else. You do have the right to sue your CPA if he did not advise you of that fact. Same with a boat. Partnerships, etc do not qualify. Only the individual or married taxpayer. Its a special gift from Congress. Same catch 22 applies to inheritance. The ownership status is all important.
BTW: what ever possessed you to put your assets into a corporation structure? If its closely held, then no liability protection whatsoever. Plus once its in a corporation ownership, any disbursements are taxed as ordinary income. Sounds like you got royally screwed, pardon my French.
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Old 18-07-2016, 14:43   #17
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Re: OK, strange question perhaps - Taxes

It wasn't that bad when looked at as a percentage just I had plans for that money, that I no longer have is all, it was a way to purchase the property years ago, put it in a Corporation, issue stock and purchase stock over time until it's all purchased.
I don't sue, or never have, I would not sue over this, it is what it is, Death and Taxes, right?

I went from having more money set aside for refit than I think we could have possibly needed, to now thinking which things can wait is all. Truth is I was going to buy the Wife a ring when we left as a celebration, now I can't.


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Old 18-07-2016, 15:16   #18
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Re: OK, strange question perhaps - Taxes

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Originally Posted by a64pilot View Post
It wasn't that bad when looked at as a percentage just I had plans for that money, that I no longer have is all, it was a way to purchase the property years ago, put it in a Corporation, issue stock and purchase stock over time until it's all purchased.
I don't sue, or never have, I would not sue over this, it is what it is, Death and Taxes, right?

I went from having more money set aside for refit than I think we could have possibly needed, to now thinking which things can wait is all. Truth is I was going to buy the Wife a ring when we left as a celebration, now I can't.


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Back in the 80s, a "nevada" corporation was all the rage but wound up being denied by the IRS. Basically similar to what you arranged. Outside of paperwork and fees, really has no advantage to an individual, as you found out. IRS has issued many letters on single asset corporations where the asset is used by the stockholder(regardless how much stock is owned). Give you a heads up. Its not a good ruling. Plus the asset must be depreciated. Which means on sale, all of the gain becomes ordinary corporate income. Stockholder benefiting from corporate assets needs to pay the tax on market value of the benefit as yearly income. A famous billionaire woman got caught up in the same issue about ten years ago, and that was for taking home some of her hotel's lamps to use in her Park Ave apartment. Helmsley. You might want to unwind the corporation stuff. So far you are lucky.
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