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.