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RE: The Tax Holy Grail for the Whale Investors- Orginal Post was incorrect
Some questions from Reddit:
"If the corp then cashes out and pays you, then wouldn't that just count as normal income then? Seems like this would change it from a capital gains income to a normal income which would be a bad thing."
"If the corp then cashes out and pays you, then wouldn't that just count as normal income then? Seems like this would change it from a capital gains income to a normal income which would be a bad thing."
Any thoughts?
If it is an s corp and they sell the property, and recognize a capital gain it flows back to the shareholder as a capital gain, anything sold under the basis it would be treated as a distribution of capital back to the shareholder.