C corp Dissolved

[TAX]

Client dissolved corporation and liquidated assets of a "C" corp.

What do you do with all asstes and liabilities on the book? Do you consider sale by looking at it's market value and then report gain or loss?

Thanks!

[Roland Slugg]

That's right

Dear TAX

Yep, that exactly what happens. See Code §336(a) and (b).

The shareholder is also taxed, based on the excess of the FMV of assets received upon liquidation (less liabilities assumed) over his basis in the shares of the liquidated corporation.