Greta
Level 9
12-06-2019
06:05 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
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?
Best Answer Click here
Labels
sjrcpa
Level 15
sjrcpa
Level 15
12-06-2019
06:05 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
To the extent there is taxable income on the final corporate return, an NOL deduction may be claimed.
Ex-AllStar
Ex-AllStar
George4Tacks
Level 15
12-06-2019
06:05 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Here is some light reading to help you to say the right thing https://www.thetaxadviser.com/issues/2012/sep/casestudy-sep2012.html
Here's wishing you many Happy Returns
Greta
Level 9
12-06-2019
06:05 PM
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Thank you to all!
