Can anyone recommend a tax attorney?

by a searcher from University of Colorado at Boulder

2 years ago

Sole member LLC with negative retained earnings (has taken recourse debt over past few years, company has lost money) now wants to contribute LLC interests of company to a C Corp that will have other shareholders. What if anything can be done to minimize tax recapture?

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searcher from University of Colorado at Boulder

Thanks fellas - what about 351(a) workaround? Thought was to take advantage of 1202 w/ C Corp status if it makes sense, can avoid costly recapture.

2 years ago | like reply | 0 likes

professional from New York University

The recapture is just a recapture of the losses that the owners have taken. The owner could contribute capital in the amount of the losses, but other than that recognition will happen.

2 years ago | like reply | 0 likes

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