What is the maximum potential built-in gains tax liability


Problem: XYZ Corp converted from a C-Corporation to an S-Corporation three years ago. It owns a building with a built-in gain of $250,000 at the time of conversion. XYZ Corp is considering selling the building, which has now appreciated an additional $50,000 since the conversion. If XYZ Corp sells the building this year, what is the maximum potential built-in gains tax liability it faces?

 

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Accounting Basics: What is the maximum potential built-in gains tax liability
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