Discussion:Liquidating and disolving a C Corp
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Discussion Forum Index --> Advanced Tax Questions --> Liquidating and disolving a C Corp
Discussion Forum Index --> Tax Questions --> Liquidating and disolving a C Corp
| 14 June 2008 | |
| What is the step by step process from a federal basis to liquidate and dissolve a C corp? Wht forms must be filed?
Neil | |
RoyDaleOne (talk|edits) said: | 14 June 2008 |
| First, does the C Corp have any money to pay you?
Second, is there any benefit to be derived by anyone, but the IRS, from doing a formal liquidation? Three, in the final year of the C Corp was there any significant income?, or significant expense? Fourth, are there any paid in taxes in a carryback periods that a claim for refund can be filed? | |
| 14 June 2008 | |
| yes the C corp has about 300K
no except the company has stopped doing business and the owners are retiring no only about 20K of income and about the same expenses Yes there are paid taxes that may have a carryback loss | |
RoyDaleOne (talk|edits) said: | 14 June 2008 |
| First, do a return and carryback the losses, and get the refunds. Wait until you get the refunds to do anything else, just a precaution. After, you get the refunds ask again. | |
| 15 June 2008 | |
| It sounds to me that when this corporation liquidates, there will be a liquidating distribution far in excess of basis. Is that right? | |
RoyDaleOne (talk|edits) said: | 15 June 2008 |
| Who knows we need the refunds to figure that out. | |
| 15 June 2008 | |
| What I was wondering was - if there is a large taxable distribution, is there a better way to reduce the tax bite on liquidation. If there is enough time, I tend to lean toward a defined benefit plan. You can't pay it out right away, but it might be feasible if you have 3-5 years.
It's possible that their retirement income could be improved significantly. | |
RoyDaleOne (talk|edits) said: | 16 June 2008 |
| Naturally, I would maximize my NOL carryback to achieve the maximum benefit of the NOL. | |
