Edward Fronczkowski’s Post

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Partner at Maillie LLP

Let’s say you own one or more vacant lots. The property has appreciated greatly and you’re ready to sell. Or maybe you have a parcel of appreciated land that you want to subdivide into lots, develop them and sell them off for a big profit. Either way, you’ll incur a tax bill. There’s a strategy to consider that allows favorable long-term capital gain tax treatment (rather than ordinary income treatment) for all the pre-development appreciation in the value of your land. 1) Establish an S corporation. 2) Sell the land to the S corp. 3) Have the S corp develop the land and sell it off. Several rules and limits apply, so this isn’t a DIY project. Contact us for assistance and to avoid pitfalls. https://bit.ly/4avKyD1

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Kirtis Siemens

Liability and Commercial Assets Insurance Specialist @ BFL CANADA | Risk Management, Commercial Insurance

5mo

Sounds like a smart strategy to minimize taxes and maximize profits when selling appreciated land Edward Fronczkowski

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