Capital loss and make company inactive?


N

ns66ns

Hi, asking a question for a friend:

her company (c corp in new york) has big capital loss, she plans to
retire so wants to shut down the company, but that will "waste" the
capital loss, so the questions are:

1. is there a way to make use of the capital loss, any financial
instrument or something like that?

2. if no, what about if she makes the company inactive, just hold some
stocks and hopefully the stocks will appreciate in value thus offset
by the captital loss

3. is there annual cost of an inactive company? does she need to file
tax (and pay high CPA fee) annually still?

thank you very much!
 
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J

John

Hi, asking a question for a friend:

her company (c corp in new york) has big capital loss, she plans to
retire so wants to shut down the company, but that will "waste" the
capital loss, so the questions are:

1. is there a way to make use of the capital loss, any financial
instrument or something like that?

2. if no, what about if she makes the company inactive, just hold some
stocks and hopefully the stocks will appreciate in value thus offset
by the captital loss

3. is there annual cost of an inactive company? does she need to file
tax (and pay high CPA fee) annually still?

thank you very much!
There are ways to use a c corp loss to offset other income but the
rules are complicated. You could ask in tax group
(misc.taxes.moderated) but your best advice may be to seek a qualified
tax professional before she closes the books and the corporation is
not legally registered in the state.
 
N

ns66ns

There are ways to use a c corp loss to offset other income but the
rules are complicated. You could ask in tax group
(misc.taxes.moderated) but your best advice may be to seek a qualified
tax professional before she closes the books and the corporation is
not legally registered in the state.- Hide quoted text -

- Show quoted text -
thanks, I posted same question there
any pointer will be appreciated
 
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B

~^ beancounter ~^

yep, when you go to shift % of ownership, the
IRS hase some rules that kick in and cause many
issues to arise...map out the plan w/care...as much $$
can be at stake...
 

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