Discussion:Tax exempt labor org.
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Discussion Forum Index --> Tax Questions --> Tax exempt labor org.
| 15 November 2006 | |
| Tax exempt Labor org. owns 2 bldgs. Incorporated the real estate under a sepsarate name in 1968. The tax exempt org. owns the corp. 100%.
Never filed a corp. tax return. Now the Labor org wants to sell the property. there was never a mortgage on the property. What are all the tax ramificatios? 1- Required to file past returns? 2- Is the capital gains taxable? 3- Can the corp. dissolve and transfer ownership directly to the labor org., without any tax cosequences-such State transfer taxes, NYC transfer taxes, corporate income taxes. 4- Can the corp. sell the property , not pay a capital gains tax and transfer the money directly to the Labor org. | |
| 16 November 2006 | |
| What were the buildings used for? Who paid the property taxes and other expense? | |
| 22 November 2006 | |
| The bldgs were rented to commercial enterprises.
The taxes and expenses were paid by the labor org. All income was recorded on the books of the labor org. There are no separate accounting records for the corporation, all assests and liabilities are recorded on the books of the labor org. income and expenses for the bldg are segregated on the books, and as such recorded, separate from the labor org. | |
| 27 November 2006 | |
| Was the building depreciated? Since depreciation is allowed or allowable, it must be taken into account when determining profit. | |
