Gains Tax

[Guest Roseanne]

My situation: I am selling properties this year and will have a

gain. These properties have been under C-corp structure and on corp taxes for the last 6 months-2 years. Not interested in 1031 exchange as I need the cash and pay off all debt.

 

Personal Capitol gains percentages I am aware of and understand.

 

My ????: When the gains flow into my corp, is the gains tax % the same as personal gain tax %, OR is the gain treated as ordinary corp income, that can be sheltered by carry forward losses and regular business expenses?

 

I am in California, so would I ALSO have a state tax due as well as capitol gains fed tax?

 

I need to find out that question soon as I must make sure I put aside the funds to pay the tax.

 

I keep getting conflicting view points.

 

I have LLC's as well, with my corp as the managing partner.

All gains are flowing into my corp.

 

How do you handle the tax gains issue???

 

Roseanne

949-951-2751 hm

949-338-3996 cell

icnenterprises@cox.net

[Dave T 0]

Roseanne,

 

You don't tell us what amount of profit you are looking at, nor what the properties are and why they are assets of a C-Corp. The answers to these questions may affect the response you receive from your corporate tax specialist.

 

Generally speaking, the first 50K in C-corp profit is taxed at a 15% corporate rate, with a progressive rate applying to increasingly greater profits. The corporate tax rate is unique to the C-corp and may have very few parallels when compared to your personal income tax structure.

 

I have no expertise in corporate taxes, and will defer any definitive response to a licensed tax specialist in your local area.