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Closing C-corp with NOL on books

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Client has a C-corp that is being closed ... no assets or cash to distribute ... just an accumulated NOL on the books ...  how is the owner to recognize the NOL on their personal return ? 

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Level 14

Owner has a capital loss for his stock basis and a nonbusiness bad debt for any loans to the corp. The NOL dies with the corp.


ex-AllStar

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Level 15
How were the NOL's financed? How was the debt handled when closing?
Income tax returns are the most imaginative fiction being written today. — Herman Wouk
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Owner added money to the company the last 3 years  to support the law suit the company was defending.  So now that the court case ended without penalty or payment the business is closing.
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Level 14

Owner has a capital loss for his stock basis and a nonbusiness bad debt for any loans to the corp. The NOL dies with the corp.


ex-AllStar

View solution in original post

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