900K In Tax Losses- Is My Basic Understanding Correct?
I am the owner of a c corp shell with a huge loss on my c corp tax return of a little less then 900K. I was approached to enter into a partnership with someone who would be a 49% owner in a property with me for 3 years and then in the 3rd year would buy the corporation from me and in essence buy my losses for a price less then the tax due on the gain of the flip he made when he simultaneously closed on the property. The deal fell apart but now it has given me the idea to try and find someone else to partner with either for a stake in the property in exchange for cash, in a similiar scenario. My understanding of the tax code is that if I was the buyer of the property with someone who had a lesser stake ( 49%) that any losses on my corp books could be used to offset a gain. Its also my understanding that the only stipulation is that my partner cannot buy me out for 3 years. Do I have the basics right? I hope I have been clear enough in explaining it.
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