A new client owned 100% of a C corporation with accumulated losses of approximately $350,000 and about the same amount due him from the corporation. He also owned the building the corporation was in and had an offer to buy it, which would result in a taxable gain on which about $155k in taxes would be owed. Two other accountants told him to “just pay it” when he asked if there was something he could do to avoid or postpone. Since he owned 100% of both, we merged the building into the C Corporation in a tax free “merger”.
Result: Minimal tax on the gain and client tax savings was $155,000.