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QUESTION DETAIL
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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.
