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Company A transferred assets and liabilities to a newly

Company A transferred assets...

Company A transferred assets and liabilities to a newly formed Company B

Accountant's Assistant: Is there anything else the Expert should be aware of?

Company B transferred stock to Company A and distributed Company Bstock to shareholder and liquidated

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9/1/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 33,142
Experience: Taxes, Immigration, Labor Relations
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I assume that Company A and Company B are corporations.
When corporation A transferred assets and liabilities to a newly formed corporation B in exchange for shares - that NOT taxable transaction.
However - when corporation A make distributions to shareholder - in your case that is liquidating distribution of corporation B shares - that is reported on form 1099div and may be potentially taxable for shareholders depending on their basis in liquidated corporation..

Lev
Lev, Tax Advisor
Category: Tax
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Customer reply replied 10 months ago
Liabilities transferred exceeded assets transferred. Is this taxable event to Company A? What type of reorganization is this?
Customer reply replied 10 months ago
Please call when you can
Phone call session started
Customer reply replied 10 months ago
OK
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