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Question - remove bldg from s-corp w/o a tax. Bldg bought 10 years ago by s-corp. Mortgage was paid off w personal funds. s-corp began paying rent to individual owner.
Building bought about 10 years ago and put into S-corp against my advice. About a year ago sole shareholder paid off the mortgage and began collecting rent from the S-Corp (saying she was now the owner). How do I transfer the building to the shareholder without triggering a tax. Can I just record a distribution of an amount equal to basis? Must any such distribution be at market value? Must it be a purchase a current market value?
