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Company A transferred assets and liabilities to a newly

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Customer: Company A transferred assets and liabilities to a newly formed Company B
JA: Is there anything else the Expert should be aware of?
Customer: Company B transferred stock to Company A and distributed Company Bstock to shareholder and liquidated
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Answered in 5 minutes by:
9/1/2017
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,331
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
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Customer reply replied 3 months ago
Liabilities transferred exceeded assets transferred. Is this taxable event to Company A? What type of reorganization is this?
Customer reply replied 3 months ago
Please call when you can
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Customer reply replied 3 months ago
OK
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Lev
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