If you have additional questions, you may call the Indiana Department of Revenue at (317) 233-0389.
Mail the completed forms to: Indiana Department of Revenue Enforcement Division/Corporate Dissolutions100 N.
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From the S corporation’s standpoint, the distribution of assets in a complete liquidation is treated as a sale to its shareholders. Normally, the beneficiary would pay the tax on the 0,000 at the end of the tax year and basis in the stock would increase by 0,000.
From the beneficiary’s standpoint, the liquidation is treated as the beneficiary selling his stock back to the S corporation in exchange for all of the corporation’s assets which are distributed to the beneficiary in the liquidation.
This post does not constitute legal advice or establish an attorney-client relationship.
All businesses registered with the Secretary of State Corporate Division must first file Articles of Dissolution with the Indiana Secretary of State. Once the Articles of Dissolution are approved by the Secretary of State, and you receive a Certificate of Dissolution, the Department of Revenue requires the following forms: The final tax return for all Indiana tax types may be submitted with the documents listed above.For example, assume Grandmother transferred her real property to Grandma Corp., an S corporation of which she owns 100% shortly after she buys it. has its own basis in the property, which is separate from Grandmother’s basis in her shares of Grandma Corp. At death, Grandmother owned the personal property (the stock in Grandma Corp) and not the real property, so her stock receives the step-up in basis up to its date of death value.For simplicity, assume the date of death fair market value of the stock is 0,000, which is equal to the value of the rental property, the only asset of the corporation.A qualified attorney can help determine the tax impact as well as coordinate the sale of property and liquidation of the business to ensure tax benefits are retained.Learn more about our estate planning and administration practices.If, instead, Grandmother keeps the property until her death and it passes to her grandchild through her will, the basis automatically jumps to the fair market value as of her death (assume it is 0,000).