One Share holder C Corporation

[Bjorn]

A sole share holder is closing down his business after many years of losses.

What, if anything, can bridge from the C corp back to the 1040. Could we take a loss of his basis in the corporation as a schedule D.

Thanks.

P.S. There is an NOL of 160,000 can we do anything with that.

[jimmcg]

Seems to me that it would be prudent for one to see if there is someone out there who could utilize the tax benefit of the NOL and would be willing to purchase the stock rather than just "closing down the business." Hate to see a perfectly good NOL go to waste. I am sure there may be other relevent facts not given and affecting the situation but this is just a thought absent other facts.

[Snagglefoof]

Basis

Will the losses of the corporation ever be realized by the owner? Most small corporations are required by lenders to have the owner guarantee the indebtedness. If this is the case, the $160K will ultimately work be realized by the owner and be deductible upon stock redemption for a schedule D (although I'll admit I have a poor concept of mechanics as to how this is done on a C corp).

If owner is not to be held accountable, I like the above suggestion by JIMMCG if someone can be found who wants to fool with it. Try Textron, they'll buy ANYTHING....

Snaggletooth

[OldJack]

The shareholder paying C-corp debts as a result of personal guarantees on C-corp loans has a business bad debt or nonbusiness bad debt deduction on 1040 as it is "paid" and it has no effect on the corporation which loses its NOL when liquidated. (yes, you must go thru liquidation procedures for a C-corp and file form 966)

If the shareholder has a stock loss and the stock qualifies as §1244 (original issue) he may be able to deduct up to $50,000/($100,000 if joint tax return) as an ordinary loss on form 1040-4797. See TheTaxBook page 18-8.

[BOB W]

Nol

Found this in google.....http://sethlevine.typepad.com/vc_adv...ls_should.html.

But I thought that there were restriction on purchased NOLs and there is>>>> here is a PDF about IRS restriction. http://ocw.mit.edu/NR/rdonlyres/Sloa.../session19.pdf (GO TO PAGE 11)

[JON]

Srly

Separate loss reporting years means at a minimum an active business peviously operating can only take advantage of loses after they are acquired, NOL only applies against the loss corps income.. The lose corporation has to acquire the profitable and same business has to happen to use up the loses. Has a very limited use to get it done. If acquirer can some how make it profitable, the operations, then they could use it, but who would PAY much for that????????????