H c liquidating corporation in
This corporate entity was filed approximately forty-three years ago on Friday, August 8, 1975 , according to public records filed with New York Department of State. filed as a Domestic Business Corporation in the State of New York and is no longer active.What are the tax consequences of liquidating a c corporation upon death of the sole shareholder, when it has shareholder loans receivable, as well as other cash and securities showing no unrealized gains?
In order to be treated as a qualified stock redemption, the distribution must result in a "meaningful reduction of the shareholder's proportionate interest in the corporation.” If the distribution does not reduce the shareholder's continuing proportionate interest in the corporation, for tax purposes it will be treated as a dividend. Although the transaction was structured as a sale of stock, it did not affect Shelly's continuing interest in Parker Companies.(B) "Contribution" means any cash, property, services rendered, promissory note, or other binding obligation to contribute cash or property or to perform services that a member contributes to a limited liability company in the capacity as a member.(C) "Conveyance" means every assignment, lease, mortgage, or encumbrance.The corp is to be liquidated in some fashion upon death, and then distributed to equally along with other assets, to mostly 4 children. How can you rate me as giving bad service when you didn't make yourself available to discuss your questions.This is supposed to be a "chat" service which requires us to have a discussion.
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Thus, for tax purposes, the form of the transaction will be disregarded and the $75,000 payment to Shelly will be treated as a dividend distribution under Section 301.