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Discussion Forum Index --> Advanced Tax Questions --> C Corp converted to S Corp then dissolved
Discussion Forum Index --> Tax Questions --> C Corp converted to S Corp then dissolved
Eaglecpa (talk|edits) said:
| 14 May 2008
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| I have a new client that is dissolving their S Corp. Details: this was a C Corp in 06 w/ NOL and PIC from sole shareholder. S election effective for 07 and then the company dissolved at the end of the year. My question is as follows: does the Add'l PIC from the C Corp transfer to stock basis in the S Corp - such that when we dissolve the S Corp we can take a capital loss for this basis?
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JR1 (talk|edits) said:
| May 14, 2008
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| Basis transfers. The NOL is *poof*.
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Eaglecpa (talk|edits) said:
| 15 May 2008
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| Thanks for your replies. Unfortunately the value of the stock purchase was very low and I don't think that PIC qualifies as section 1244. Correct me if I'm wrong - thx
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Marcilio (talk|edits) said:
| 17 May 2008
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| The original stock had to designated as 1244 stock. You have to check the corporate record book. PIC from initial capitalization can qualify.
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JR1 (talk|edits) said:
| May 19, 2008
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| 1244 has been automatic since the mid 70's, M, if it meets the qualifications.
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Eaglecpa (talk|edits) said:
| 23 May 2008
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| The stock & PIC qualifies but they do not have anything in writing that designates it as 1244. I suppose this could be added after-the-fact?
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