Collapsible corporation

Collapsible corporation,

Definition of Collapsible corporation:

  1. Formed to make a short-term venture (such as purchase of a real estate) look long-term so that the its income (which is generally taxable) may be passed off as capital gain (which is generally not taxable). Once this purpose is served, the corporation is dissolved (collapsed).

Meaning of Collapsible corporation & Collapsible corporation Definition