525
Distribution of installment sale out of S Corp
1/7/09 11:34 AM, Viewed by asker 1/19/09 8:07 AM
Total Views: 618
Total Views: 618
If I distribute an installment sale note out of an S Corp to the shareholders does this trigger the recognition of the deferred gain all in one year?
Solved!
All Replies: Answers (2)
Rating 0
Answer
1/15/09 11:42 AM
Jmay, you have to remember that S corp is a passthrough entity. when this kind of situation arises, any and all unpaid proceeds shall be deffered untill they are being paid or realize.
Rating + 10
Solved!
1/16/09 4:30 PM
distribution from s-corp or corp triggers recognition of gain unless it is a liquidating dividend. think of it as distribution at FMV unless the liquidate exception applies. This was correct 5 yrs ago but may have changed since then. research installment sale and liquidation.
