Liquidations and Dissolutions: Critical Tax Implications for Businesses
Proactive Steps to Minimize Negative Income Tax Consequences
Recording of a 110-minute CPE/CLE webinar with Q&A
This CLE webinar will update advisors' awareness of the key federal income tax implications throughout the business dissolution or liquidation processes, and offer alternative tax compliance and tax planning strategies.
- Differences in dissolutions vs. liquidations
- When a company legally remains in business even though it has dissolved
- Whether a company’s status as a corporation is ended by an administrative dissolution
- Distribution of gains and losses to shareholders in a liquidation
- Taxation at both the business and shareholder levels in a liquidation
- Tax issues of common transactions in a dissolution or liquidation
- Shareholder loans to a from a business
- Handling contingent liabilities
- Working with different state processes for dissolving a business
- Errors and omissions in a depreciation schedule
- Possible tax planning issues
- Tax differences between repossession of assets for debt payment, and debt forgiveness
- Timing of sales of high-cost-basis assets at a loss to offset gains on sales of zero- or low-basis assets
- Timing sales of assets with payment of deductible business expenses, to avoid large Schedule F losses in one year and large gains in another
- Tax consequences of converting from C corporation to S corporation or LLC, and vice versa
The panel will cover these and other relevant topics:
- Understanding the tax differences between administrative dissolution and liquidation, and whether it's possible for a business to close without suffering the tax bite of complete liquidation.
- Employing tax strategies to handle commonplace transactions such as shareholder loans to and from a business and contingent liabilities.
- Undertaking tax planning for higher-level issues — such as timing sales of high-cost-basis assets at a loss, sale of assets to offset payment of deductible business expenses, or a partner buyout through stock redemption.
Briskin Cross & Sanford
His practice focuses on matters involving business law and taxation, including general corporate transactions, M&A,... | Read More
His practice focuses on matters involving business law and taxation, including general corporate transactions, M&A, and partnerships and LLCs. He lectures, writes and teaches frequently on LLC and partnership taxation matters.Close
Stein Sperling Bennett DeJong Driscoll & Greenfeig
He is a member of the firm's Tax Group and specializes in transactional tax advice in areas ranging from entity... | Read More
He is a member of the firm's Tax Group and specializes in transactional tax advice in areas ranging from entity formation to business reorganizations. He also advises business clients on employee incentive programs.Close
Partner, Transaction Advisory Services
Ernst & Young
He works with clients on domestic and international tax planning related to domestic and cross-border M&A,... | Read More
He works with clients on domestic and international tax planning related to domestic and cross-border M&A, including taxable and exempt transactions; cross-border investments; financing structures and other matters. He previously was a partner at Fulbright & Jaworski.Close