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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
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Liquidating a S-Corp that all it holds is negative

Customer Question

liquidating a S-Corp that all it holds is negative investment from a pass through entity Shareholders have suspended losses that are capital (813k) and ordinary (22k) if we do a straight liquidation my client will recognize 1.1 million in income. How would the income from the S-Corp that is liquidating pass that income out on the K-1 as ordinary income? Or would it retain the characteristic from the year we ended up with the suspended losses in 2010 and pass thru ordinary income 285K and Capital 813K? Trying to figure out the tax consequences to the shareholder that doesn't have the NOL and would have a taxable transaction
JA: The Accountant will know how to help. Is there anything else important you think the Accountant should know?
Customer: The S-Corp is the general partner in a Family LP and all parties are related.
Submitted: 6 months ago.
Category: Tax
Customer: replied 6 months ago.
Posted by JustAnswer at customer's request) Hello. I would like to request the following Expert Service(s) from you: Live Phone Call. Let me know if you need more information, or send me the service offer(s) so we can proceed.
Expert:  PDtax replied 6 months ago.

Hi from Just Answer. I'mCustomer and can assist.

Expert:  PDtax replied 6 months ago.

I'll post a phone call offer.