However, advance planning can often result in better tax results.
Also, it may be possible to structure an asset sale in a way that doesn’t involve a corporate liquidation if that would mean lower taxes.
704(c)(1)(B)); (3) the distribution is within seven years after a contribution of appreciated property (see Sec. He has never contributed property other than cash to the LLC.
Most gains and losses are then reported on an IRS Form, which is filed with the corporation’s Form 1120, U. Corporation Income Tax Return, for the year of sale.
It has no AE&P, only AAA and Additional Paid in Capital (additional basis on stock).
In this case, are you saying that no 1099-DIV (Box 8) is required?
Currently, long-term capital gains recognized by individuals are taxed at a maximum federal rate of no more than 20%.
The 20% rate only affects singles with taxable income above 5,800, married joint-filing couples with income above 9,000, heads of households with income above 2,400, and married individuals who file separate returns with income above 9,500.