Then after dissolution of the corp do a quit claim deed to divide the interest 50/50?
Liquidation of the corporation is likely to be a taxable event. You MUST have a seasoned tax practitioner review the tax returns and company history to determine the tax impact of any proposeed liquidation. This is factually intensive and requires a careful review.
Marty Davidoff, [email protected], 732-274-1600. This answer is provided for general information only. You should seek advice from an attorney or tax professional.
I agree with Attorney Davidoff. Splitting up a company is a serious matter that can trigger massive unwanted gains. What seems simple and easy becomes an event that causes you to recognize gains on assets you wouldn't have recognized until years later, or in some cases at all.
Also, you want everything to be clean and tidy. This falls under one of those situations where if one sibling does better than the other, or gets unlucky with the assets they received, there could be problems down the road.
Get an attorney for many reasons.
I agree with both attorneys. In addition, a quit claim deed may not be appropriate here. In addition, placing real estate into 50/50 ownership with siblings raises many legal, estate and practical problems. Get with a tax and real estate attorney BEFORE you do anything. You have now been warned about the folly of doing this without experienced tax counsel.
Hope this helps.
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Mr. Fromm is licensed to practice law throughout the state of PA with offices in Philadelphia and Montgomery Counties. He is authorized to handle IRS matters throughout the United States. His phone number is 215-735-2336 or his email address is [email protected] , his website for more tax, estate and business articles is www.sjfpc.com. and his blog is
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I am admitted to practice in Arkansas. What may work here is the creation of a trust (or perhaps two) of some kind in which the property may be transferred with you and the sibling having 50/50 interest in the trust.
I would need to know more facts to assist further.
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