The Portfolio also discusses the tax treatment of liquidations before the repeal of that doctrine.
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Evolution of the Tax Treatment of Corporate Liquidations B.
A C corporation is a business entity governed by Subchapter C of the Internal Revenue Code.
The Portfolio highlights traps for unwary taxpayers and discusses planning opportunities in connection with a corporate liquidation.
This schedule is being provided as a courtesy so that you can assist shareholders in calculating the tax basis of their shares.
Q: Was the initial liquidating distribution of .20 per share the final liquidation of my investment?
A: No, in addition to the initial liquidating distribution, we expect to make one or more additional liquidating distributions in First Quarter 2017.
It is generally paid from the capital of the corporation, upon the decision to suspend all or part of its business operations.
Liquidation dividend remains for shareholders after a firm sells its assets and pays off its creditors.
Tax Management Portfolio, Corporate Liquidations, No. 784-3rd, analyses the tax considerations in connection with the liquidation of a corporation.