circumstances must a subsidiary recognize gain or loss upon liquidating into its parents?
481277
Someone should have read his economics textbook, shouldn't he have?
736395
When the details of the buy-out are released the stock price will adjust accordingly.  If the buyout is announced to be $12 per share then the stock will trade at $12 (or very close) almost immediately.  You can sell the shares in the open market at that point in time.\n\nOtherwise, you will be offered shares of the parent company (one who is buying out smaller company).  The number of shares will be a dollar-weighted average of the shares you own.  You will still come out with the same dollar amount in the long run after the conversion but it will likely be far fewer shares.
710114
I'm thinking you are reading it incorrectly.  The gain from the sale of the real estate goes on NJ Schedule B as does the loss from the stocks.  These net together to give you a final gain/loss on line 4 of Schedule B.  If it is a loss, it is ignored.  If it is a gain, it transfers to line 18 on your NJ-1040 (or whatever line it is for 2006).  When you say they are in different categories, what do you mean?\n\nOK, I read in the instructions where it said, "You may deduct Federal passive losses in full in the year incurred against any gain within the same category of income, but only in the year that it occurred."  I believe that does NOT apply to you.  Had the sale of stock been from a Partnership instead, then it would be from a different category and they would not nullify each other.  But in your situation, since both events go on Schedule B, they do "balance out".  If the result is negative, you will not be able to subtract it from your other income.  If the net result is positive, you must include it on 1040-NJ line 18.
1170151
The law is 3 years, but there are exceptions.  I exception is carry over of capital losses.  You can carry those over, I think for 5 years so that would mean that you have to have the documentation covering the loss for a total of 8 years.  That is just one example that I am aware of.  There are numerous others.  Another obvious example is any documentation of stocks that you purchased but did not sell until years later.  You need to keep them for 3 years following reporting of taxes on the sale.
812825
Your question isn't worded grammatically correct and, I believe, is being misinterpreted.  Are you saying you owned part of a corporation that you purchased as an investment and sold it after a year?  If you owned stock in a corporation and held it for over a year and sold it, you will have long term gains (or losses).  If this is the only capital gains you had all year, it will be taxed at 15% if your marginal tax rate is greater than 20%, and it will be taxed at 5% if your marginal tax rate is less than 20%.  If it is a loss, it will offset other income up to $3,000...the remainder (if any) will carry over to next year.  If you had other gains or losses, all of them net together.
303907
It depends if the company can make up the money that it lost then yes it would, if it can't then no it will not.
72470
You make them a member of the company and will them your membership shares.  The basis of the transfer is based on your original basis in the stock (the cost).  Your childs basis becomes the value on the date of the inheritance/transfer.\n\nI believe this is how it will work (i could be wrong here), so you should check with a tax professional.
461793
Whatever price the current owner is asking for this business, he should be able to support with accurate financial data.\n\nAsk for the last 12 months of financial statements - Profit and Loss Statements, Balance Sheets, etc. Then pick a few months at random, and ask the owner for the supporting documentation (receipts, bank statements, invoices, check stubs, etc.). You will want to make sure that the financial statements are accurate.\n\nIf the owner of this business is unwilling or unable to provide you with this data, DO NOT BUY THIS BUSINESS.
69189
For the company:\nBasis = (purchase price - accumulated depreciation)\nProfit/Loss = Sale Proceeds - Basis\nThe company would view the profit of loss on the proceeds as a disposition of the asset.  Since the sale is cost less depreciation then the company would have no implications -- depending on the depreciation method.  There could be tax implications if the company were using a cost vs. market depreciation method.\n\nThe tax implication for the employee would be:\n  Basis = Sale Price Paid\nThere are no real tax implications for the employee at that time -- FOR THE SALE OF THE CAR.  If the employee were given that car to use then he/she would have had to be paying tax on the benefit of using the car.
597227
did you use the interest and taxes as deductions in the past (you should not have technically)\n\non non personal property (you did not live there) that is not (has not) generated income the interest and taxes are added to the base cost of the property (this will help reduce your gain; it is not a capital gain though)\n\na property that is purchased to be sold and not rented is treated the same way as inventory would be treated (you pay income tax, it is not a capital gain)\n\nif you have a loss it is applied against your income to reduce your taxable income\n\n\n\nTaxation – Lesson 7\nCMA Canada - July 2004 Page 31\nBusiness income versus capital gain\nIn most cases, a business is readily identifiable by the nature of its activities. For example, the manufacture and development of computer chips for resale would constitute\na business. Sometimes, however, it is difficult to distinguish whether income from a transaction is business in nature or capital gain. The sale of land can be either a capital transaction or a business income transaction depending on the facts of the circumstances.\nThe distinction is important because, as you will see, business income is fully taxed whereas only one-half of capital gains are taxed. Moreover, business losses can be\napplied against all other sources of income (e.g. capital gains or employment income), whereas capital losses are only available for offset against capital gains. Business income\nis taxed less favorably while business losses are treated more preferentially. The full amount of business income is taxed in the year that it is earned while only one half of\ncapital gains are taxable, in the year in which the gain is realized. Business losses, unlike that of capital losses, can be used to offset income from all other sources.\nThe chief factor in distinguishing a business activity from a capital gain transaction is the intended use of the property on acquisition. The principal reason for the purchase and the subsequent use of the property will determine the type of income of the profit (loss)\ngenerated upon sale. If the property was acquired for the purpose of resale, then its disposition is likely business income. i.e. if the property purchased is considered\ninventory, then all profits triggered upon sale would be considered business income.\nConversely, property acquired for the purpose of providing the owner a long-term benefit is likely capital property; its disposition creates a capital gain or loss, i.e. any gains generated upon the sale of capital assets used in the course of running a business are deemed to be capital gains.
329589
Section 1445(b)(5) provides that a transferee (purchaser) is not required to withhold on the proceeds if the transferee is an individual acquiring the property for his own use as a residence.  This is echoed in Regulation section 1.1445-2(d)(1) which states:\n\n"No withholding is required under section 1445(a) if one or more individual transferees acquire a U.S. real property interest for use as a residence and the amount realized on the transaction is $300,000 or less." \n\nThe exemption does not apply if the purchaser is not a natural person, or if the purchaser does not intend to use the property as a personal residence.  If your purchaser has not been identified, it can't be determined at this time whether the exemption applies.\n\nThere are ways to reduce the withholding tax, but in your case the cost to implement them would be a significant fraction of the amount of tax at stake.  You may owe tax anyway, and if you don't, the excess of the amount withheld over your ultimate tax liability is refundable to you.\n\nSection 1445 is the withholding provision that backs up section 897, which imposes tax on sales of real property by foreigners.  Under that section, your gain is taxable as if it were income derived from a business conducted in the United States.  This means that you must file a Form 1040-NR for the year of sale reporting the gain and computing the tax.  The tax may be more or less than the amount withheld.  If it is more, you must pay the difference to the IRS; if it is less, then you are entitled to a refund of the excess payment.  In any case, you can't file until after the close of the relevant year.\n\nArticle 13 of the US-UK income tax treaty specifically allows the US to tax gains derived by UK residents from the sale of US real property.\n\nAdditional information is available at the website link below.
842032
A transfer from share capital to accumulated losses is more than an accounting issue.  It's more a legal issue.  You will need your lawyer's assistance with this one.
796247
The company could increase the performance of the company so that investors value the share above $1 (eg. disposing of poorly performing divisions/assets, cost cutting measures etc.)\n\nAlternatively, a consolidation of capital in the form of a reverse split can be done too, although this is just a stop gap for a poorly performing company.\n\nHere's an interesting article about reverse splits:\nhttp://moneycentral.msn.com/content/P32972.asp
1106219
If this is a corporation stock, it will indicate which state that it is in. In most cases, you can contact your state's Secretary of State's office to learn if that company is still in business, and what has happened to that company over the years.   \n\nIt might take a bit of work to find any value.  Even if it went BUST a long time ago, the story will go well as a family heirloom.   Write the story and keep it with the stock certificates.
982898
If a company wishes to acquire another, that company needs to offer a price that will entice the stock holders to accept the offer.  From the acquiring company's standpoint if it is an exchange of stock offer, it does not cost the company any money to acquire the other company.  They are just issuing more paper.  You will often read about the dilutive effect on the acquiring company's earnings from the aquisition.  Managements are under preasure to grow their sales and earnings.  One supposedly simple way to do this is to acquire another company, then fire the support personel to cut overhead.   However, it very often does not work out that way.
257424
When selling a stock you can repurchase the same stock almost instantly.  However, for tax purposes, in order to recognize a gain or loss you can't buy the stock for 30 days after you sell it.  For example, if you see that ABC company stock has a $1000 loss and it is Dec. in order for you to claim the stock as a $1000 loss you can sell it before the end of the month and you shouldn't buy it back for 30 days in order to claim the loss.
449583
Losses recognized but not gains?  What accounting are you talking about?