Tax implications of liquidating seductive dating net
hen a partner withdraws from a partnership, it usually does not matter to the principals whether the withdrawing partner receives compensation for his partnership interest from third parties, from the partnership, or from the remaining partners themselves.After all, there is generally little, if any, actual economic difference between the liquidation of a partner’s interest and a sale of that interest.
(In the case of “substantially appreciated” partnership inventory, the departing partner will have ordinary income regardless of whether the transaction is a sale or liquidation.) Furthermore, whereas the remaining partners will receive a cost basis for the departing partner’s share of the inventory if the transaction is a liquidation, the remaining partners in the case of a transaction structured as a sale will be able to increase their basis only if a Section 754 election is in effect.
THIS ARTICLE IS INTENDED SOLELY FOR INFORMATIONAL PURPOSES AND SHOULD NOT BE CONSTRUED AS, OR USED AS, A SUBSTITUTE FOR LEGAL ADVICE FOR SPECIFIC TRANSACTIONS OR IN SPECIFIC CIRCUMSTANCES.
THIS ARTICLE MAY NOT HAVE BEEN UPDATED BY THE TIME OF YOUR READING, AND MAY BE TIME-SENSITIVE IN NATURE.
Ordinary dividends are the most common type of distribution from a corporation.
They’re taxable as ordinary income unless they’re qualified dividends.
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Capital gain distributions might be paid by one of these: Capital gain distributions are always reported as long-term capital gains.