about 200k in saving. Do I have to pay tax when I receive the check as my name for my individual tax? I have paid all the taxes as corpration.
2007-10-05 09:06:38 · 4 answers · asked by MASAKI A 2 in Business & Finance ➔ Taxes ➔ United States
Sounds like you have a Subchapter S corp and you personally paid the taxes. So only thing to report is the long term capital gain for your company stock to be redeemed. The sales price is easy to compute. Your cost basis to compute the capital gain is very complex - you can add all prior year taxable income less distributions to compute it. See a CPA for this.
2007-10-05 09:15:54 · answer #1 · answered by spicertax 5 · 0⤊ 1⤋
sounds like it would be a capital gain as long as the company was in business for more than a year. the income tax form should have something for sale of or distributions from a business. I'm guessing you'll only have to pay the lower capital gains tax, but its not clear on what amount. you need to use a qualified tax advisor or do some research on the specifics for your case.
2007-10-05 09:10:06 · answer #2 · answered by John M 7 · 0⤊ 0⤋
Yes. Sorry about that but you really should have done some of your homework before closing down the company. Maybe you still have time to talk to a tax adviser.
Or just sit on your duffer and do nothing. Then pay your taxes.
2007-10-05 09:15:34 · answer #3 · answered by ra16297845 3 · 0⤊ 0⤋
If the corporation is giving you a gift of the remaining assets, then yes, you have to pay tax on it.
2007-10-05 09:09:20 · answer #4 · answered by Stuart 7 · 0⤊ 0⤋