CA Sub S Tax after sale - Spidell

CA Sub S Tax after sale

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Message Board CA Sub S Tax after sale

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    • #187248
      Anonymous
      Member

      Client will be selling her S corp in early November and is on a calendar year. It’s a stock sale but electing section 338 treatment.  Ownership will end with sale.  If purchase price is $16 million and CA corp tax at 1.5% is $240,000 for 2019, what is the proper way to deduct the Ca tax payment for federal purpose?

    • #187284
      Lynn Freer
      Participant

      It is accrued into the last year.

    • #187518
      Anonymous

      Thanks for the answer but I failed to mention that client is  cash basis.

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