Can I sell my house to my C corporation for a price above value, then have the business sell the house later?

by James F. DiFilippo, CPA | Jun 07, 2018
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I own a house and I am the majority shareholder in a C corporation. I want to sell my house, and I am wondering if it is legal to sell my house to the C corporation (at, say, 10 percent above the appraised value) and have the C corporation sell the house now or at a later time? I am thinking that the 10 percent will be tax-free capital gains for me (as I am selling my primary home), and the C corporation can write off the difference between what it purchased the house and what it sells the house for. Of course, there will be some costs (title costs) in selling the house to the C corporation.

No way can you inflate the sale price to the C corporation over fair market. That may be treated as criminal by the IRS. 

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Answered by: James F. DiFilippo, CPA, is the owner of DiFilippo & Company CPAs in Toughkenamon, Pa.

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