Installment note/sale - Spidell

Installment note/sale

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Message Board Installment note/sale

This topic contains 1 reply, has 2 voices, and was last updated by Lynn Freer 2 weeks ago.

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  • #183931
    Anonymous

    Can a C corporation transfer an installment agreement/deferred gain to its owners, personally, and then dissolve the corporation.  Then, individuals would pick up the subsequent payments/gain on their returns?

  • #183958
    Lynn Freer
    Participant

    An S corp note can be passed out to the shareholders as part of the liquidation plan and shareholders pick up the gain. However for CA purposes the S corp must report the entire gain in the year of liquidation. However, a C corp does not get this treatment.