Liquidating distribution two years
If the partnership distributes property -- anything other than cash and property treated as cash -- during its liquidation, it has no immediate tax effect.
Instead, gain or loss is delayed until you sell the property.
In August 2004 GAMHC re-mailed notice packets on the initial distribution of sale proceeds to eligible members whose packets were returned by the U. Post Office after the April 2003 original mailing or after the October, 2004 follow up.
In July 2004 GAMHC continued the initial distribution by mailing checks to eligible members whose objections were resolved by the SDL’s determination of claim letters.
Are they tired of discussing its operations with you?
Do you or the other owners covet the company’s assets?
Only partners who receive a liquidating distribution of cash may have an immediate taxable gain or loss to report.
Has it outlived its usefulness as an asset management, asset protection, or, dare we say it, wealth transfer vehicle?
Are you tired of discussing the company’s operations with the other owners?
Under the new proposals, distributions will in some common circumstances be chargeable instead to Income Tax, at rates ranging up to 38.1%. The rules will apply to distributions made after 5 April 2016 (regardless of whether the liquidation commences before or after that date).
What distributions will be caught by the new rules?