H c liquidating corporation in
This corp is new to me - but I have worked with the shareholders individually and to my knowledge only one dividend has been paid, a 1099-DIV was prepared and distributed.
If I understand correctly - a liquidating dividend is different the a regular dividend in that the dividend is taxed only to the extend the amount exceeds stock basis.
based on percentage of ownership and contributions to the corp, loans etc.
I mostly work with S-corp and partnerships - basis calculation for C corp stock is the same?
A sunset provision reverts back the law to its original language for taxable years beginning after December 31, 2010. Could their distribution be classifyied as a bonus, subject to payroll tax issues? Your perception seems good on this one with respect to the payroll taxes, though that will be based on personal circumstances.
Is this a gift and everyone agrees, as is to happen (have happened)?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.The adjusted basis for determining the gain or loss from the sale or other disposition of property, whenever acquired, shall be the basis (determined under section 1012 or other applicable sections of this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses)), adjusted as provided in section 1016.The C Corp I am working with just went thru an asset sale of the company and will report the gain on sale. After all entries are made, gain on sale, taxes paid, etc we have left common stock and retained earnings. The basis of property shall be the cost of such property, except as otherwise provided in this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses).
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I think I am making this more complicated than needs be?