Thumb of Michigan | Jay in WA - 2/14/2014 00:29
How do I unwind a C corm in my case. Corp owns the equipment and operations. land is owned personally. Been maxing out the 15% tax bracket for the corp for over 20 years so the corps net worth is pretty large now. Not going to take it all out in a few years of wages and or rent without a huge tax hit. I can see retirement on the horizion but don't know how to unwind the C corp with out paying a lot of tax's.
One thing to consider: start a Defined Benefit Plan for the shareholders. Timing can be everything, though. Need an attorney who understands it, and you'll have to hire an actuary. Wanting to completely eliminate the C corp the day you retire might not be possible, it wasn't in my case. I don't really have a good reason to eliminate our C corp, either- so I don't have much experience in doing so. The tax hit you refer to in closing down a C corp may not be an issue at all if you get everything orchestrated correctly, however.
Edited by pat-michigan 2/14/2014 08:17
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Some tax questions about a farming corporation.
