Sale of business in 1120-s and sale of real estate , sole asset in an LLC (1065 filer) resulted in large gains for each. The gain adds to basis of shareholders in 1120-S and members in 1065. Upon liquidation of each entity post sales, the liquidating distribution results in a loss as cost basis now exceeds the distribution. I am trying to determine the nature of this loss; capital loss or ordinary ?
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If a business was liquidated, that would mean all balance sheet accounts are zero. If the equity accounts have a balance, it would mean there also would be a balance in asset account(s). Assets= Liability + Equity.
Are you are saying the outside basis is different than inside basis? -
Nothing to contribute to this thread except good to see Kathyc2 posting again on this board!!!Comment
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