Explore the 1,000’s of tax questions answered by professionals.

Back to list

QUESTION DETAIL

Related User

Votes

I have a C-corporation that has retained earnings from day trading activity. The main business of the C-corporation is a restaurant. How do I go about separating the day trading business into a separate corporation from the restaurant business? And what would be the tax consequences of doing so?


ANSWER


The BIDaWIZ Team's Answer:

You could reorganize the company into two separate businesses or create a master-feeder relationship as per IRC Section 368(1)(D) if the transaction meets the guidelines set forth in IRC Section 354, 355 or 356.

The BIDaWIZ Team

 

 

  • Currently 4.6190/5 Stars.
  • 1
  • 2
  • 3
  • 4
  • 5
1547 Ans.