Are local occupational taxes in a final return recoverable? I paid occupational license taxes due to a 1231 gain from liquidation of an S-Corp, but see no way to recover.

theresialsmith@s · ‎08-12-2023

I have a sizable gain on the deemed liquidation of fully depreciated real estate. The pass through gain on form 1120 will offset the loss on the stock disposal, but nothing offsets this local occupational tax. Help.

IRonMaN · ‎08-12-2023

It might help if you mentioned what locality you are referring to.

Slava Ukraini!

qbteachmt · ‎08-12-2023

What does "recoverable" mean in this context? Business taxes on a business (you stated 1120, but also S Corp?) are business deductions. It would not also be "recoverable" unless the local entity has some provision that your taxpayer is eligible for.

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