C Corps, Foreign Assets and the Fiscal Cliff


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sdfghjggfdsrtyhGot a C Corp question?  Send it in! Plus make sure you check out http://www.CCorporationTax.com for our recent webinar and a limited time special

Here’s a question we had left over from our last webinar:

“I have an S Corp for holding foreign currency assets. Is it better to put that in a C Corp?”

The rule of thumb is to always hold appreciating assets inside an LLC (limited liability company) or LP (limited partnership).

In almost every situation, we would recommend an LLC. If you want to gradually gift part of your assets to your heirs as part of an estate plan, use a manager-managed LLC and keep control by naming yourself as one of the managers.

The problem with using either an S Corporation or a C Corporation to hold appreciating assets is that if you distribute out the assets, it must be done at fair market value. That means you could have gain, whether you like it or not.

During our webinar, we talked about how a C Corporation could be the answer to the fiscal cliff occurring January 1, 2013. In this case, though, it’s probably not the best answer.


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