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So, if I own a corporation that buys an asset for $500,000, then I turn around and sell the corporation for $10,000,000, I'm in some kind of hot water?
by ChefDenominator 10y ago
So, if I own a corporation that buys an asset for $500,000, then I turn around and sell the corporation for $10,000,000, I'm in some kind of hot water?
- ptenk 10y agoDepends. If the asset is digital, you can register the corporation in a tax haven through a offshore broker (Cayman, Panama, or St. Kitts), acquire the asset and then turn around and sell the corporation.
- ChefDenominator 10y agoYou can always "sell a corporation." It is not necessary to go to a tax haven. I think you missed my point, which was that if I own a corporation and it buys an asset, then I sell that corporation, are these things tied together? If the corporation simply found a deal, then the owners of the corporation chose to sell, why would the corporation (or owners) get hit with a gain on asset (purchased by corporation) tax? The shareholders should be taxed as normal gain on assets (shares) and it should not be reflected in the taxes paid by the corporation, unless I am missing something.