Liquadating c corporation
If a gift, is this really just a tax avoidance scheme...?The related party rules would have losses disallowed on a sale of stock between family members, but gains would be recognized generally, and with a gift the basis would transfer to the recipient from the transferor if the fair market value of the stock exceeds the transferor's basis at the time of the gift. Edit: I was thinking of my above response, and since a lot people get this confused, I will point out that we 'experts' on Just Answers are users of the platform, like you, and not employees of Just Answers or anything. I personally will be traveling this weekend, so I doubt I'll be around a computer, but other experts are here too and can assist if you ask a new question / opt me out at any time.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?
Is basis calulated as would be in a partnership or s-corp?As part of every liquidation, state and federal income, payroll and capital gains taxes must be paid at both the corporate and individual levels.A C corporation is a business entity governed by Subchapter C of the Internal Revenue Code.I know you will be gone this weekend but I think we have all the answers to this questions just need to work on the mechanics.The corp books and the sale are clean and simple, it is the family stuff that should have been worked out long before this and I think they understand the issue fairly well.