Finance

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

What are the tax implications?
min read
Opinions expressed by Entrepreneur contributors are their own.
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.

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

4 Pieces of Financial Advice Every Budding Entrepreneur Needs to Hear