Hi guys, I was hoping to get little help here. My friend was asking me couple of questions since I'm an accountant, but I wasn't too sure so here I am.
First Question.
I have a friend who has two C corporations which he owns 100%. He's trying to close down one and transfer all his assets from one corporation to the other. Reason for closing down is that he just simply has no time to manage both and there isn't any insolvency issue. My initial thinking was that he could transfer all his assets from one corp to another in exchange for the shares. By doing so, he wouldn't have any taxable exchange under IRC 351.
Second Question.
Liquidating corporation invested/moved money to his other corporation by buying its shares. I was wondering how would that be affected when my friend is transferring all assets to another.
First Question.
I have a friend who has two C corporations which he owns 100%. He's trying to close down one and transfer all his assets from one corporation to the other. Reason for closing down is that he just simply has no time to manage both and there isn't any insolvency issue. My initial thinking was that he could transfer all his assets from one corp to another in exchange for the shares. By doing so, he wouldn't have any taxable exchange under IRC 351.
Second Question.
Liquidating corporation invested/moved money to his other corporation by buying its shares. I was wondering how would that be affected when my friend is transferring all assets to another.
