The critical issue for tax planning is whether the assets distributed are considered property under IRC section 336 and whether the corporation owns them.
In a professional practice, tangible property such as office equipment, furniture and fixtures makes up a small portion of a firm’s total value.
David also has significant experience of international commercial arbitration under arbitration claim relating to a construction project, and he has worked on a number of other major arbitrations relating to infrastructure and commercial projects.
In addition to contentious work, he has advised both investors and states in Europe, Asia, The Complete Retreats Liquidating Trust v Logue and others: acting for the respondent in a multi-million pound worldwide freezing injunction case arising out of a US insolvency action.
awyers advise CPAs to have employment and noncompete agreements in their accounting practices.
Trade secrets, special processes, patents and proprietary information are among an employer’s protectable interests, but how noncompete provisions create an employer property right isn’t clear.When a firm or corporation distributes to its shareholders all of its assets, both tangible and intangible, and ceases doing business, the IRS says there is a taxable distribution of its intangible goodwill.THE CRITICAL ISSUE FOR TAX PLANNING is whether the assets distributed are considered property under IRC code section 336 and whether the corporation owns them.When such a business distributes its property, it generally is deemed to have sold the property at fair market value, which requires it to recognize a gain (IRC section 336(a)).The shareholder, who treats the fair market value of the property as received in exchange for his or her stock, also recognizes a gain (IRC section 331(a)).