Liquidating my assets
Most states require that an S corporation authorize a person or team to file the company's articles of dissolution with the appropriate state agency and wind up its affairs.
If the s\h has the cash, have him repay the loan to the corp and then distribute the cash to him.It involves valuing the company's tangible and intangible property, preparing it for sale and choosing the best sales method for each property type.The person responsible for this task has a legal duty to maximize the value of the assets, so he can't just give them away for a pittance or sell them to inside parties at a discounted price.Distribution to extent of capital stock is basis to the shareholder.Then dist to extent of RE is dividend income - assume it would be qualified so subject to cap gains rate.If he doesn't have cash, you can distribute the receivable to him - same treatment in his individual return, but I prefer the first option for a better trail.
Finally, remaining distribution is liquidating dividend. Don't forget to prepare a 1099-DIV for year of liquidation.
Liquidated assets that remain after creditors have been satisfied must typically be distributed to shareholders of record on a per share basis.
S corporations are required by the federal tax code to have only one class of stock, so all shareholders have equal rights to distributions from the remainder.
Not all circumstances are bad, other changes are simply the desire to live a more active lifestyle.
The benefit of downsizing is once you organize your home, then you organize your life.
When you create space in your home, you also create space in your life!