[taxchat] S Corp Liquidation

I'm trying to help a client think through a process that I am not really familiar with....  I will of course suggest that they take their planning to an 'expert' in this field - But now I'm curious...  

 

S corp has sold all of it's assets for a profit which will pass through on a K-1 to the sole share holder. 

 

Shareholder had invested 20,000 in stock in the corporation....  How is this reflected in the overall picture?   Do they show a stock loss - limited to $3,000 capital loss per year?   Or does it somehow reduce the amount of sale profit on the K-1. 

 

Or maybe I'm not thinking clearly and this has 'no effect'.        ARRGH! 

 

 

Thanks! 

 

 

 

 

Glenda Stockwell
Certified Public Accountant
407 Central Ave - PO Box 164
Bedford, IA  50833
stockwellcpa@frontiernet.net

 

712-523-2173

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