Are you considering converting your C corporation to an S corporation?
If so, being aware of the built-in gains tax that may be assessed to your corporation is essential. With the proper planning, such as timing the sale of the built-in gain assets, you can escape paying the dreaded built-in gains tax.
What is built-in gains tax? Generally, an S corporation is not subject to tax. However, when a C corporation is converted to an S corporation status, the highest corporate tax rate (currently 35%), is imposed on the net built-in gains of the corporation, which is the excess of the fair …read more
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