Question - SLX INC owns one asset -- a patent with a $5 Million FMV. SLX INC's has $4 Million tax basis in the asset. The corporation also has $500,000 cash on hand in a checking account.
SLX liquidates both assets as a full corporate liquidation (after taxes -- the corporation pays taxes at 35%).
What is the tax ramifications for SLX INC?
What is the tax ramification for its only 100% shareholder (Martie owns 100% of the stock of SLX INC.) if Marty has $4.5 Million tax cost in the shares of SLX INC?