Maximizing Real Estate Value through Refinancing and Tax Strategies

This interview explores the issue of what happens if a company is selling to an ESOP and they have real estate held by the company.  The main issue is that the ESOP has to purchase both the company's operational value and the value of the real estate.  The cash flows have to take into consideration the debt related to each valuation and can create some challenges.  To avoid this it is common to transfer the real estate out of the company into the selling shareholders possession but this can create tax issues.  This informative podcast will walk through possible solutions to this potential issue for both S-Corp and C-Corp entities.