Corporate liquidating dividend bolton dating website
This is for 'regular' or non-liquidating distributions in general.
The corp is sold and no longer doing business, so the liquidating dividend would be a sale of stock.
I think I am making this more complicated than needs be?
Except as provided in subparagraph (B), that portion of the distribution which is not a dividend, to the extent that it exceeds the adjusted basis of the stock, shall be treated as gain from the sale or exchange of property.
The C Corp I am working with just went thru an asset sale of the company and will report the gain on sale. After all entries are made, gain on sale, taxes paid, etc we have left common stock and retained earnings. The basis of property shall be the cost of such property, except as otherwise provided in this subchapter and subchapters C (relating to corporate distributions and adjustments), K (relating to partners and partnerships), and P (relating to capital gains and losses).If a gift, is this really just a tax avoidance scheme...?The related party rules would have losses disallowed on a sale of stock between family members, but gains would be recognized generally, and with a gift the basis would transfer to the recipient from the transferor if the fair market value of the stock exceeds the transferor's basis at the time of the gift. Edit: I was thinking of my above response, and since a lot people get this confused, I will point out that we 'experts' on Just Answers are users of the platform, like you, and not employees of Just Answers or anything. I personally will be traveling this weekend, so I doubt I'll be around a computer, but other experts are here too and can assist if you ask a new question / opt me out at any time.A sunset provision reverts back the law to its original language for taxable years beginning after December 31, 2010. Could their distribution be classifyied as a bonus, subject to payroll tax issues? Your perception seems good on this one with respect to the payroll taxes, though that will be based on personal circumstances.The information you gave me yesterday was so helpfull. It can almost become a legal question too depending on how much fighting between family members goes on...
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In a corporate set-up, dividend in the Philippines represents the share of the owners of the corporation – the stockholders.