Liquidating and non liquidating distributions Free america sex freinder
The net effect was that the corporation and the REIT did not pay taxes on the REIT's earnings (typically, mortgage interest) during the liquidation period. 2122) that would end the tax benefits arising from the transactions described above.
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After some 'seasoning," the non-REIT corporation would plan to liquidate the REIT.
For the next three years, the recipient corporation would not pay tax on the REIT's distributions, which continued to be eligible for the dividends paid deduction.
Internal Revenue Service Form 1099-DIV, Dividends and Distributions, is a recordkeeping document that shows stock distributions received during the year.
While corporations most often issue 1099-DIVs to report stock dividend distributions, it can also be used to report nondividend distributions, including money a corporation returns to an investor during the liquidation process.