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    walk away

    i am involved in a corp c-it is still operating as a bldg. supply-i just want to walk away-what steps should i take concerning irs

    #2
    Do you mean you want to walk away from being the preparrr? Or, are you a stock holder? If stock holder, only 1 or 1 of many?

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      #3
      I am a stock holder 43%, the other stock holders have put much more money in business than me, especially when economy went bad & so many failed to pay, so i am willing to just let them have it
      any information would be very much appreciated

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        #4
        I am one of 4

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          #5
          Unless the company bylaws state differently, you can sell or gift stock. Bear in mind that if you sell stock to a related party and there is a loss it would not be deductible.

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            #6
            The S corp need to do a valuation of your holding and then the remaining shareholders buy that from you and a final K1 is issued. If you just give that away without any consideration, it may trigger gift tax issues depending on the value.
            Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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              #7
              Originally posted by ATSMAN View Post
              The S corp need to do a valuation of your holding and then the remaining shareholders buy that from you and a final K1 is issued. If you just give that away without any consideration, it may trigger gift tax issues depending on the value.
              OP indicated it's a C corp.

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                #8
                Originally posted by kathyc2 View Post

                OP indicated it's a C corp.
                My mistake, but even if it is a C corp with 4 shareholders, same process (except the K1) to get a valuation done. I doubt it is publicly traded.
                Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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                  #9
                  Originally posted by ATSMAN View Post

                  My mistake, but even if it is a C corp with 4 shareholders, same process (except the K1) to get a valuation done. I doubt it is publicly traded.
                  I'm missing why a valuation? OP stated not looking to get FMV for stock.

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                    #10
                    Originally posted by kathyc2 View Post

                    I'm missing why a valuation? OP stated not looking to get FMV for stock.
                    I am assuming OP still has shareholder basis? I have never heard of a liquidation without some sort of valuation to establish basis etc. It is up to the Cor. what they want to do but I would NOT touch it with a 10 foot pole without a valuation. Too much risk upon audit.
                    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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