Article Date:
March 2014

Word Count:



Don’t Let Losses Disappear When You Liquidate Your S Corporation

Let’s say that the building and some other assets that your S corporation owns have dropped in value.


Let’s say further that you want to



get rid of the S corporation (liquidate it),


keep the building and those other assets personally (you don’t want to sell them), and


claim tax-deductible losses on any drop in value of the building or other S corporation assets.


Is there a way you can do all this? There might be.


You could liquidate your S corporation. Liquidation is a deemed sale of assets at fair market value. If everything works in the liquidation, you get to



use the losses as tax deductions on your personal tax return, and


keep the assets personally.


Tricky Road


You face a tricky road when navigating liquidation to keep the assets personally and also realize and recognize tax-deductible losses. We will help you with that in this article, so stay alert as we show you how to navigate some large bumps in your path.


Liability Protection


Since you had the assets in an S corporation, your planning likely included liability protection. As ... Log in to view full article.

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