Lower C corporation income tax rates have increased attention to the Code Sec. 1202 exclusion for gain on the sale of stock. Learn how the Code Sec. 1202 exclusion works, how it applies when a business changes from another entity to a C corporation, how it affects a C corporation’s business structure, and how it compares to other business exit strategies.

Also, learn how to move from corporate status to a partnership once the tax benefits of being a C corporation has run its course. Review the impact of Dynamo Holdings Ltd. Partnership v. Commissioner, T.C. Memo. 2018-61, which addresses sales and loans between businesses owned by related parties. It limits the application of a taxpayer-friendly case on business transfers but also provides hope for those with relaxed documentation of loans.