Liquidating distribution tax treatment Kinky free chat room

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Can you tell me how this type of transaction should be treated for tax purposes?

A: Internal Revenue Service spokesman Jesse Weller says liquidating distributions are considered a return of capital.

It is immaterial that the person who sold the membership is not the person who sells the tangible personal property to a member.

Any sale of a membership described in subdivision (a)(1)(A) or (a)(1)(B) is regarded as related to the retail sale by the retailer selling tangible personal property to a member, not by the person selling the membership, measured by the amounts received by the person selling the membership. Charges for membership fees not related to anticipated retail transactions are not subject to tax.

Let’s assume that the Lie Dharma Putra Company issued dividend to its common stockholders of ,500,000 of which

Can you tell me how this type of transaction should be treated for tax purposes?A: Internal Revenue Service spokesman Jesse Weller says liquidating distributions are considered a return of capital.It is immaterial that the person who sold the membership is not the person who sells the tangible personal property to a member.Any sale of a membership described in subdivision (a)(1)(A) or (a)(1)(B) is regarded as related to the retail sale by the retailer selling tangible personal property to a member, not by the person selling the membership, measured by the amounts received by the person selling the membership. Charges for membership fees not related to anticipated retail transactions are not subject to tax.Let’s assume that the Lie Dharma Putra Company issued dividend to its common stockholders of $2,500,000 of which $1,000,000 is considered income and the rest a return of contributed capital. Common Stock Dividend Distributable = 300,000 [Credit].Common Stock, $20 par = 300,000 Following the issuance the stockholder’s equity is as follows: Common Stock, [$20 par x 45,000] = $ 900,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity = 1,500,000 Note that the large stock dividend is treated as a stock split, that is, a split-up effected in the form of a dividend.

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Can you tell me how this type of transaction should be treated for tax purposes?

A: Internal Revenue Service spokesman Jesse Weller says liquidating distributions are considered a return of capital.

It is immaterial that the person who sold the membership is not the person who sells the tangible personal property to a member.

Any sale of a membership described in subdivision (a)(1)(A) or (a)(1)(B) is regarded as related to the retail sale by the retailer selling tangible personal property to a member, not by the person selling the membership, measured by the amounts received by the person selling the membership. Charges for membership fees not related to anticipated retail transactions are not subject to tax.

Let’s assume that the Lie Dharma Putra Company issued dividend to its common stockholders of $2,500,000 of which $1,000,000 is considered income and the rest a return of contributed capital. Common Stock Dividend Distributable = 300,000 [Credit].

Common Stock, $20 par = 300,000 Following the issuance the stockholder’s equity is as follows: Common Stock, [$20 par x 45,000] = $ 900,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity = 1,500,000 Note that the large stock dividend is treated as a stock split, that is, a split-up effected in the form of a dividend.

Example: An investor holds a stock with a $10 basis.

,000,000 is considered income and the rest a return of contributed capital. Common Stock Dividend Distributable = 300,000 [Credit].

Common Stock, par = 300,000 Following the issuance the stockholder’s equity is as follows: Common Stock, [ par x 45,000] = $ 900,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity = 1,500,000 Note that the large stock dividend is treated as a stock split, that is, a split-up effected in the form of a dividend.

Example: An investor holds a stock with a basis.

The distribution reduces the tax basis of the fund. Cash = 2,000,000 Let’s assume that the PUTRA Corporation declares a property dividend, payable in bonds of Lie Dharma Company being held to maturity and costing 0,000. Investments in Lie Dharma Company Bonds = 600,000 Firms may find themselves with sufficient retained earnings to declare a dividend but not enough liquidity for distribution.They are treated as a reduction of contributed capital, either additional paid-in-capital or a special contracontributed capital account, designated as “Contributed Capital Distributed” as a “Liquidating Dividend”. Common Stock Dividend Distributable = 300,000 At the time of distribution the following journal entry is required: [Debit].regardless of the amount of the membership fee, the retailer sells its products for a lower price to a person who has paid the membership fee than to a person who has not paid the fee.(2) The membership fees described in subdivision (a)(1)(A) or (a)(1)(B) are part of the gross receipts of the person selling tangible personal property to a member.The types of dividends include [1] cash, [2] property, [3] scrip, [4] liquidating, and [5] stock. Let’s assume that the Hugo Company declared, on June 17, 2009, a scrip dividend in the form of a three-month promissory note amount to

The distribution reduces the tax basis of the fund.

Cash = 2,000,000 Let’s assume that the PUTRA Corporation declares a property dividend, payable in bonds of Lie Dharma Company being held to maturity and costing $500,000. Investments in Lie Dharma Company Bonds = 600,000 Firms may find themselves with sufficient retained earnings to declare a dividend but not enough liquidity for distribution.

They are treated as a reduction of contributed capital, either additional paid-in-capital or a special contracontributed capital account, designated as “Contributed Capital Distributed” as a “Liquidating Dividend”. Common Stock Dividend Distributable = 300,000 At the time of distribution the following journal entry is required: [Debit].

regardless of the amount of the membership fee, the retailer sells its products for a lower price to a person who has paid the membership fee than to a person who has not paid the fee.

(2) The membership fees described in subdivision (a)(1)(A) or (a)(1)(B) are part of the gross receipts of the person selling tangible personal property to a member.

The types of dividends include [1] cash, [2] property, [3] scrip, [4] liquidating, and [5] stock. Let’s assume that the Hugo Company declared, on June 17, 2009, a scrip dividend in the form of a three-month promissory note amount to $1 a share on 3,000,000 shares outstanding. At the date of payment, September 17, 2009 [Debit]. Interest Expense = 75,000 [$3,000,000 x 0.10 x 3/12] [Credit]. To illustrate the accounting for small stock dividend, let’s assume a corporation that has the following stockholder’s equity prior to the issuance of a small stock dividend: Common Stock, $20 par [30,000 shares issued and outstanding] = $ 600,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity = $1,500,000 Let’s also assume that the firm issued a 20% stock dividend on a date where the stock was selling at $25 per share. The following journal entries are required at the time of declaration: [Debit].

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The distribution reduces the tax basis of the fund. Cash = 2,000,000 Let’s assume that the PUTRA Corporation declares a property dividend, payable in bonds of Lie Dharma Company being held to maturity and costing $500,000. Investments in Lie Dharma Company Bonds = 600,000 Firms may find themselves with sufficient retained earnings to declare a dividend but not enough liquidity for distribution.They are treated as a reduction of contributed capital, either additional paid-in-capital or a special contracontributed capital account, designated as “Contributed Capital Distributed” as a “Liquidating Dividend”. Common Stock Dividend Distributable = 300,000 At the time of distribution the following journal entry is required: [Debit].regardless of the amount of the membership fee, the retailer sells its products for a lower price to a person who has paid the membership fee than to a person who has not paid the fee.(2) The membership fees described in subdivision (a)(1)(A) or (a)(1)(B) are part of the gross receipts of the person selling tangible personal property to a member.The types of dividends include [1] cash, [2] property, [3] scrip, [4] liquidating, and [5] stock. Let’s assume that the Hugo Company declared, on June 17, 2009, a scrip dividend in the form of a three-month promissory note amount to $1 a share on 3,000,000 shares outstanding. At the date of payment, September 17, 2009 [Debit]. Interest Expense = 75,000 [$3,000,000 x 0.10 x 3/12] [Credit]. To illustrate the accounting for small stock dividend, let’s assume a corporation that has the following stockholder’s equity prior to the issuance of a small stock dividend: Common Stock, $20 par [30,000 shares issued and outstanding] = $ 600,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity = $1,500,000 Let’s also assume that the firm issued a 20% stock dividend on a date where the stock was selling at $25 per share. The following journal entries are required at the time of declaration: [Debit].

a share on 3,000,000 shares outstanding. At the date of payment, September 17, 2009 [Debit]. Interest Expense = 75,000 [,000,000 x 0.10 x 3/12] [Credit]. To illustrate the accounting for small stock dividend, let’s assume a corporation that has the following stockholder’s equity prior to the issuance of a small stock dividend: Common Stock, par [30,000 shares issued and outstanding] = $ 600,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity =

The distribution reduces the tax basis of the fund.

Cash = 2,000,000 Let’s assume that the PUTRA Corporation declares a property dividend, payable in bonds of Lie Dharma Company being held to maturity and costing $500,000. Investments in Lie Dharma Company Bonds = 600,000 Firms may find themselves with sufficient retained earnings to declare a dividend but not enough liquidity for distribution.

They are treated as a reduction of contributed capital, either additional paid-in-capital or a special contracontributed capital account, designated as “Contributed Capital Distributed” as a “Liquidating Dividend”. Common Stock Dividend Distributable = 300,000 At the time of distribution the following journal entry is required: [Debit].

regardless of the amount of the membership fee, the retailer sells its products for a lower price to a person who has paid the membership fee than to a person who has not paid the fee.

(2) The membership fees described in subdivision (a)(1)(A) or (a)(1)(B) are part of the gross receipts of the person selling tangible personal property to a member.

The types of dividends include [1] cash, [2] property, [3] scrip, [4] liquidating, and [5] stock. Let’s assume that the Hugo Company declared, on June 17, 2009, a scrip dividend in the form of a three-month promissory note amount to $1 a share on 3,000,000 shares outstanding. At the date of payment, September 17, 2009 [Debit]. Interest Expense = 75,000 [$3,000,000 x 0.10 x 3/12] [Credit]. To illustrate the accounting for small stock dividend, let’s assume a corporation that has the following stockholder’s equity prior to the issuance of a small stock dividend: Common Stock, $20 par [30,000 shares issued and outstanding] = $ 600,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity = $1,500,000 Let’s also assume that the firm issued a 20% stock dividend on a date where the stock was selling at $25 per share. The following journal entries are required at the time of declaration: [Debit].

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The distribution reduces the tax basis of the fund. Cash = 2,000,000 Let’s assume that the PUTRA Corporation declares a property dividend, payable in bonds of Lie Dharma Company being held to maturity and costing $500,000. Investments in Lie Dharma Company Bonds = 600,000 Firms may find themselves with sufficient retained earnings to declare a dividend but not enough liquidity for distribution.They are treated as a reduction of contributed capital, either additional paid-in-capital or a special contracontributed capital account, designated as “Contributed Capital Distributed” as a “Liquidating Dividend”. Common Stock Dividend Distributable = 300,000 At the time of distribution the following journal entry is required: [Debit].regardless of the amount of the membership fee, the retailer sells its products for a lower price to a person who has paid the membership fee than to a person who has not paid the fee.(2) The membership fees described in subdivision (a)(1)(A) or (a)(1)(B) are part of the gross receipts of the person selling tangible personal property to a member.The types of dividends include [1] cash, [2] property, [3] scrip, [4] liquidating, and [5] stock. Let’s assume that the Hugo Company declared, on June 17, 2009, a scrip dividend in the form of a three-month promissory note amount to $1 a share on 3,000,000 shares outstanding. At the date of payment, September 17, 2009 [Debit]. Interest Expense = 75,000 [$3,000,000 x 0.10 x 3/12] [Credit]. To illustrate the accounting for small stock dividend, let’s assume a corporation that has the following stockholder’s equity prior to the issuance of a small stock dividend: Common Stock, $20 par [30,000 shares issued and outstanding] = $ 600,000 Additional Paid-in-Capital = 300,000 Total Stockholder’s Equity = $1,500,000 Let’s also assume that the firm issued a 20% stock dividend on a date where the stock was selling at $25 per share. The following journal entries are required at the time of declaration: [Debit].

,500,000 Let’s also assume that the firm issued a 20% stock dividend on a date where the stock was selling at per share. The following journal entries are required at the time of declaration: [Debit].

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