Q: How I can transfer a depreciable property from domestic corporation into 100% owner without triggering sale and creating

A: There are different ways to transfer a depreciable property from a domestic corporation to its owner without triggering a taxable sale and creating a capital gain tax liability. One common approach is to use a tax-free reorganization such as a corporate merger, a corporate division, or a transfer of assets in exchange for stock.

However, the specific method that can be used depends on the individual circumstances of the transfer, such as the type of the corporation, the tax basis of the property, and the ownership structure.

It is recommended that you consult with a tax attorney or a certified public accountant (CPA) who has experience in corporate tax law to discuss your situation and explore the available options. They can provide you with guidance on the best way to transfer the property to the owner while minimizing tax liability.

In California, the transfer of property between a corporation and its shareholder is generally considered a taxable event that may trigger capital gains tax liabilities. However, there are certain exemptions and provisions that may allow for a tax-free transfer under certain circumstances, such as:

Section 351 of the Internal Revenue Code: This provision allows for the transfer of property to a corporation in exchange for stock without triggering a taxable event, as long as certain requirements are met.

Section 1031 of the Internal Revenue Code: This provision allows for the tax-deferred exchange of like-kind property, which may be applicable if the property being transferred is of a similar nature to the property received in exchange.

California Revenue and Taxation Code Section 18152: This provision allows for the transfer of property between a corporation and its shareholder without triggering a taxable event if the transfer is made pursuant to a reorganization plan or merger.

It is recommended that you consult with a qualified tax attorney or accountant to determine the best course of action in your specific situation and to ensure compliance with applicable laws and regulations.