I own 50% of a real estate company. I bought out my partner for $500,000.
I sold a property to help pay for the business. I intend to sell the remaining assets as well during the next 2 years until the companies assets are gone.

My CPA says that my stock basis has changed. My first 1,000 shares are at $30,000 and the next 1,00 shares are at $500,000.

I contend that I have raised the basis in the property and should be able to write off a % of the price I paid for the company with each sale instead of paying the full capital gains tax with each sale. Otherwise I end up with 2,000 shares of stock at $530,000 and no assets. I have to write off the stock in the end and I have no capital gains at that time to offset the loss of $530,000.00 that I paid for the stock.

How do I reduce my capital gains tax as I sell of individual properties instead of waiting until the company is worthless?



Andrew
713-724-9285