selling note to my corporation - Posted by Ken

import · August 30, 2001, 1:34pm

Posted by JHyre in TexOhio on August 30, 2001 at 14:06:18:

You could contribute it to the corp for stock tax-free, assuming that you own 80%+ of the corp. I don’t see why you would sell it…any “loss” created would be deferred, possibly permanently, due to the relationship between you and the corp (I assume that you directly or indirectly own 50%+ of the corp). Make sure that the corp produces enough active income to overshadow the interest on the note, otherwise you may have a personal holding company, with a deemed dividend distribution taxed at 39.6%+.

John Hyre

import · August 30, 2001, 1:34pm

selling note to my corporation - Posted by Ken

Posted by Ken on August 30, 2001 at 13:34:43:

Just set up a corp. for flips, etc. I have a $7500 note to me in my name and was curious if there is any caveats to selling it to my corp. for a minimal amount, say $100? I am the sole shareholder. The main reasons are to have a little cash flow for the minimal expenses…mail box rentals, cell phone, etc. and get into a better tax situation (since i make $80k).