Tax consequences of liquidating Sexweb cam sin registro
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?
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.
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.
Is this a gift and everyone agrees, as is to happen (have happened)?
We knew the taxation of this sale was going to be brutal. Long story short, 2010 may be a good year if that is when the liquidation went/goes through. They were talking about a partial distribution now and some next year - may not be a good idea. In general, the liquidation is complete for a shareholder when he/she forfeits the stock in exchange for the cash. Well, an agreement was signed between another sister and brother-in-law and son that they would own 10% of the company after 5 years.
I just wanted make sure I had a handle on the situation. 109-222, §102." Here is IRC 57(a)(7) being referred to in the article: General rule For purposes of this part, the items of tax preference determined under this section are- ...(7) Exclusion for gains on sale of certain small business stock An amount equal to 7 percent of the amount excluded from gross income for the taxable year under section 1202. The liquidation will take place for all shareholders at the same time, but as a technicality, it is the 'liquidation of the shareholders' interest' that will trigger the capital gain (assuming a corporation wanted to continue, it would be a purchase of the shareholder's stock directly as opposed to via a liquidation generally, should a single shareholder get bought out by the corporation or a third party). No stock was issued and nothing was paid in for ownership other than they were employees of the company.
I think I am making this more complicated than needs be?