skip to content »

Liquidating distribution tax treatment

liquidating distribution tax treatment-60

In any case, you could make someone a new shareholder this year if that is the deal, but you're going to have to justify your treatment then, because if no stock was issued and nothing was paid in for ownership, then it's either a gift or compensation as you note.

I mostly work with S-corp and partnerships - basis calculation for C corp stock is the same?The cost of real property shall not include any amount in respect of real property taxes which are treated under section 164 (d) as imposed on the taxpayer.Is basis calulated as would be in a partnership or s-corp?I recently read a Facebook conversation about health insurance where one person said, “I’m better off saving the $1000/month premiums and paying for my own medical bills if they ever come up”. They do this by employing a team of brilliant mathematicians called Actuaries who analyze detailed mountains of statistics about the average behavior of people like you, and thus how much money they expect to pay out to you in claims. The first thing to understand about insurance companies is that they are making money off of you – lots of it.I am more than willing to pay extra for your time and patience.

The stock basis is going to be what shareholders paid for the stock originally it sounds like. Did that dividend reduce that shareholder's stock basis per IRC 301 above?

I need to get a handle on the stock basis calculation.

Dividends come first from earnings and profits of the corporation, then from the shareholders' individual bases, and then, finally, for dividends in excess of basis, shareholders recognize capital gain.

We don't want to loose the 1202 stock over this one.

Thank you for all your help and I do like Just Answers and will continue to send questions to you if okay.

This is for 'regular' or non-liquidating distributions in general.