In liquidating assets and closing C-corporation, can use be made of NOL loss from prior years?

[Greta]

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?

[sjrcpa · Accepted solution]

The liquidating distribution of the house is done at FMV

[sjrcpa]

To the extent there is taxable income on the final corporate return, an NOL deduction may be claimed.

[George4Tacks]

Here is some light reading to help you to say the right thing https://www.thetaxadviser.com/issues/2012/sep/casestudy-sep2012.html

[Greta]

Thank you to all!