Can I transfer the assets of my closing business to another company I own?

What are the tax implications?

Roni Lynn Deutch answered May 24, 2010|

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Generally, you should be able to transfer assets from one company to another without triggering a taxable event. That being said, there are some additional things to consider.

If the assets were completely depreciated at the time of the transfer, the assets have no basis. Thus the company taking ownership of the asset would not receive any tax benefit from the transfer.

Make sure you structure the transfer so that the closing company does not receive anything in return for the asset. This would be viewed as a sale by the IRS, and thus would have tax implications.

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Roni Lynn Deutch

Roni Deutch is known as "The Tax Lady" for a reason: She has two decades of practical experience resolving IRS tax problems and preparing taxes for taxpayers nationwide. Consequently, she has become a well-known media personality and one of the few go-to tax experts in the country. She is the founder and owner of the nation's largest tax resolution law firm, Roni Deutch, A Professional Tax Corp.

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Comments:

That is completely false information. If you are distributing assets out of a corporation it is a deemed distribution at fair market value of those assets, thus triggering a taxable event. If you are transferring significantly all of your assets then you will also bring with it any intangible worth of your company. = HUGE POTENTIAL TAX LIABILITY. I believe more information is needed to answer this question such as what type of entity is your current business operating as.

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