Commercial Real Estate - Inherited - C-Corp

Forum|Forum|3 years ago
February 10, 2023
2 replies
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I inherited a commercial rental property from the Estate that was a C Corp. I have the fair market value.

Can I set up the basis on the books of the C-Corp?

Can I convert the Corp to an S-Corp.

Suggestions

Thanks

DaveF1006

Yes, you can convert a C-Corp to an S-Corp by filing form 2553 with the Internal Revenue Service (IRS) to change the tax election. All shareholders must sign the form.

As far as the inherited property, if this was willed to you specifically, you can contribute property to a C Corporation in exchange for shares in the company. The C Corporation would need to calculate the new basis for the property that was contributed.

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Michael5254Author

Thanks - Can I use the current C-Corp that hold the assets and replace the current fixed assets schedule with the new value as per the appraisal (It was willed specifically,). then convert to an s-corp.

DianeW777

It depends. One key is the employer identification number (EIN). Check out this IRS page below to see if that is a factor. You may need legal assistance which we cannot provide.