Greta
Level 9
12-06-2019
06:05 PM
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C-Corporation distributes rental house (market value $100K, fully depreciated) to sole shareholder and closes the corp. It has a 40K NOL from prior years. Can I say that shareholder buys the house for $100K so as to make use of the 40K NOL. Or can I say the value of the distribution to shareholder is $60K?
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sjrcpa
Level 15
12-06-2019
06:05 PM
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The liquidating distribution of the house is done at FMV
The more I know the more I don’t know.
sjrcpa
Level 15
12-06-2019
06:05 PM
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To the extent there is taxable income on the final corporate return, an NOL deduction may be claimed.
The more I know the more I don’t know.
The more I know the more I don’t know.
George4Tacks
Level 15
12-06-2019
06:05 PM
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Here is some light reading to help you to say the right thing https://www.thetaxadviser.com/issues/2012/sep/casestudy-sep2012.html
Answers are easy. Questions are hard!
Greta
Level 9
12-06-2019
06:05 PM
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Thank you to all!
