So, if I own a corporation that buys an asset for $500,000, then I turn around and sell the corporation for $10,000,000, I'm in some kind of hot water?
I think you missed my point, which was that if I own a corporation and it buys an asset, then I sell that corporation, are these things tied together?
If the corporation simply found a deal, then the owners of the corporation chose to sell, why would the corporation (or owners) get hit with a gain on asset (purchased by corporation) tax? The shareholders should be taxed as normal gain on assets (shares) and it should not be reflected in the taxes paid by the corporation, unless I am missing something.