Implications of liquidating dinner dating club london
In addition, Subchapter S contains the rules concerning the pass-through character of income, gain and loss.
Consequently, tax professionals advising the corporation and its shareholders must be able to calculate the tax impact for shareholders, who ultimately bear the tax burden of the liquidation.
Crucial to tax-efficient planning in S Corp liquidation situations is accurate calculation of both S shareholders’ “outside” tax basis in their shares, and the S Corp’s “inside” tax basis in its assets.
Advisers must have a comprehensive basis schedule for all shareholders.
This webinar will delve into a case study on the planning, tax calculations, property dispositions and dissolution filings required to liquidate an S corporation.The panel will provide a briefing on the general rules stated in IRC Section 1371 tying liquidation rules back to those applying to C Corps, detailing the gain/loss on distributions in exchange for stock, and outline two-three scenarios illustrating the rules in action.Because a complete liquidation will cause any shareholder’s suspended losses to be extinguished, the timing of the liquidation becomes a major issue in planning.Listen as our experienced panel provides a detailed examination of the tax rules and planning considerations that must be addressed in the dissolution and liquidation of S Corporations, and offers case studies to illustrate tax treatments to shareholders under various liquidation scenarios.
In some cases, there may be some corporate level problems, such as the built-in gains taxes.
Tax advisers must be aware of the Subchapter C rules, especially those concerned with gain or loss recognition on the distribution.