Tax Management- Selling property to buy business
I am selling a property to raise capital to fund future acquisitions. Through my research, i came across a tax-efficient structure to execute this.
1. Start a C Corporation and move the property as an asset under the C corp.
This is considered as a taxable event. Structure this as an installment sale so that you can spread the payments from the C Corp to you personally over few years.
2. C Corp to sell the property and raise cash.
3. Leverage the cash to buy a business.
4. Use the proceeds of the business to continue paying the installment to you from C Corp.
As I am getting paid in installments, I continue to pay the capital gains tax based on my tax bracket that year.
I understand there are a few caveats to this. Has anybody done this?.
Any recommendations on tax consultants or attorneys who can help structure this right.