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

Greta
Level 9

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

The liquidating distribution of the house is done at FMV


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4 Comments 4
sjrcpa
Level 15

The liquidating distribution of the house is done at FMV


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sjrcpa
Level 15
To the extent there is taxable income on the final corporate return, an NOL deduction may be claimed.

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George4Tacks
Level 15

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!
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Greta
Level 9
Thank you to all!
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