Profitable Commercial Real Estate Sale — No Income Taxes
Our client owned and operated a retail business operation in a plaza which was also owned by him, using the common business strategy of having two separate companies own the two operations.
While the retail operation had been successful for many years, over time it had begun experiencing significant losses and the owner decided it was time to close it down. He continued to operate the plaza, however, and it remained profitable.
As a result, he was approached by a potential purchaser. The owner was satisfied with the proposed purchase price, but concerned about how much income tax he would have to pay.
As he had been our client for some time, Cusimano Professional Corporation knew both companies well, and he asked our advice about his present situation. Our expertise allowed him to capitalize on the reorganization of the corporate structure in order to sell the property without significant tax consequences.