Legal Definition and Related Resources of Collapsible Corporation

A corporation formed principally for the purpose of purchasing property with a view to its transformation or dissolution prior to the realization of a substantial part of the income to be derived from such property and prior to the realization of such gain by the corporation’s shareholders. See I.R. C. §341.

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Collapsible Corporation in Historical Law

You might be interested in the historical meaning of this term. Browse or search for Collapsible Corporation in Historical Law in the Encyclopedia of Law.

Search for legal acronyms and/or abbreviations containing Collapsible Corporation in the Legal Abbreviations and Acronyms Dictionary.

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Concept of Collapsible Corporation in the context of Real Property

A short definition of Collapsible Corporation: A corporation which is sold instead of its product, in order to create a capital gain rather than ordinary income for tax purposes. For example: A and B (persons) are real estate developers who want to build an office building to sell. They form a corporation which builds the building. Then, rather than selling the building, A and B sell the corporation, claiming capital gain on the stock profit. Federal tax laws regulate such transactions.

Concept of Collapsible Corporation in the context of Real Property

A short definition of Collapsible Corporation: A corporation which is sold instead of its product, in order to create a capital gain rather than ordinary income for tax purposes. For example: A and B (persons) are real estate developers who want to build an office building to sell. They form a corporation which builds the building. Then, rather than selling the building, A and B sell the corporation, claiming capital gain on the stock profit. Federal tax laws regulate such transactions.