Finally, BlackRock said that it does not provide tax advice and investors should consult their tax advisers regarding the tax treatment applicable to a liquidating
distribution, any other payments received in connection with the liquidation and from the ownership and operation of the Liquidating
Trust and any future distributions by it.
The company also announced today that its transfer records will be closed, and the company's stock transfer agent will no longer recognize or record transfers of the company's common stock for any reason, effective on the Record Date for the Final Liquidating
Trust filed a cross-complaint against the city and the original developers.
Table 1 Retention Dividend yeild 8% of $20 million $ 1,600,000 Less 70% dividend received deductions 1,120,000 Taxable income $ 480,000 Corporate tax 34% 163,200 Distribution ($1,600,000 less $163,200) $ 1,436,800 Less 28% shareholder tax 402,304 After-tax return to shareholders $ 1,034,496 Liquidation Liquidating
distribution $ 20,000,000 Less tax on distribution Section 331:.
Practice tip: The liquidation-reincorporation technique may be useful when the liquidating
corporation has sufficient net operating losses (NOLs) to offset the gain recognized on its disposition of low-basis property in complete liquidation.
The half interest in land Hex received is treated as a liquidating
distribution and takes a basis equal to Hex's remaining partnership basis--$2,500.
However, the tax consequences of converting a C corporation to an LLC could have deleterious effects on both the liquidating
corporation and its shareholders.
The corporation would use its $100,000 NOL carryover to offset the $100,000 gain ($200,000 FMV of assets--$100,000 basis) it would recognize on the liquidating
That is how much he is entitled to in liquidating
The PFIC made a liquidating
distribution, but retained a small amount of funds for incidental expenses associated with a Sec.