Due to age, retirement or failure of the business, many businesses must liquidate their assets and...

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Accounting

Due to age, retirement or failure of the business, manybusinesses must liquidate their assets and cease doingbusiness.
What is the tax treatment to the business and the owners uponliquidation of the business when the business is a C corporation,an S corporation or a partnership?

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Liquidation refers to binding up of a business over a time and selling its assets to the one who claims It simply means to bring a business to its end and thereof selling its assets When a company is not making profits or running in loss its better to close down the company This is one of the common reason for liquidation But liquidation is not as simple as it seems to be Liquidation is usually taxable for shareholders or the business While selling off the assets the businesses can have tax gain If we talk about C corporation these are businesses where taxes are implied separate from their owners In this C corporation tax is implied first when the business had earned income which means taxes are implied on earnings of the business and again the taxes are implied when at the time of distributing dividends to the shareholders At the time See Answer

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Due to age, retirement or failure of the business, manybusinesses must liquidate their assets and cease doingbusiness.What is the tax treatment to the business and the owners uponliquidation of the business when the business is a C corporation,an S corporation or a partnership?