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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 586
Experience:  10 years experience
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We are a family owned S corp with Life Insurance policies

Customer Question

We are a family owned S corp with Life Insurance policies (Corp as the beneficiary) purchased to fund a stock buy back upon a shareholders death.
We no longer own the properties that were the assets necessitating these policies and giving value to our stock shares. The only value is now in Life Insurance.
We would like to be able to close the S Corp, but need information on how distribution of the LI policies will be taxed. What type of tax, individual or capital gains? And what number on the key policy information is used for tax purposes?
Submitted: 3 months ago.
Category: Tax
Expert:  Mark Taylor replied 3 months ago.

Hi, my name is Mark. I will be happy to help you with your questions. What is your plan with the life insurance policies?