Discussion:C Corp-Final Return-With Assets
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Discussion Forum Index --> Advanced Tax Questions --> C Corp-Final Return-With Assets
Discussion Forum Index --> Tax Questions --> C Corp-Final Return-With Assets
| 15 July 2008 | |
| Filed extension for 2007 C-Corp final return with year ending December. Did some reading on the forum about dissovled-liquidated Corp final returns. I did not file form 966 and per the instructions it has to be completed 30 days after dissolution or liquidation, which would be 12/31/07. What is the difference between dissolved and liquidated. Am I in trouble for not filing this form 966? Do I need to file form 966. Occording to the instruction (form 966) distribution of property recognizing gain or loss on assets(equip) is FMV. Assets were not sold, they were turned to personal use or obsolete in this case. Do I still use FMV as sale price? What do I do with the common stock of $3,00.00 ($1.00 per share)? | |
| July 16, 2008 | |
| 966 is filed with final return. Dissolved, liquidated, same thing. (Has nothing to do with state legalities by the way.) Yes, when those assets are turned over for personal use, they are deemed to be sold for FMV and gain/loss recognized in the corp. The stock is the s/h's basis on the Sch. D. | |
| 17 July 2008 | |
| Dissolution is the termination of the legal existence of the corporation. Liquidation is the total distribution of the corporate assets and liabilities.
As JR noted, there is a corporate level gain or loss in any distribution made in complete liquidation. In addition, there is a shareholder level gain or loss for the difference between the fmv of the distribution and his basis in his stock. | |
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