Ibf fund liquidating llc tax information
• Provide a vehicle to wrap up loose ends when lower value or less liquid assets remain. 101, can qualify as sale or exchange of shares for Federal Income Tax purposes allowing stockholders to recognize loss to the extent the cost basis of their shares exceeds the per share value of assets transferred to the liquidating trust.• “Liquidation” into trust can end officers’ deferral period for severance payments under IRC 409A, depending on specific company circumstances. • As the winding up process progresses, the trust is readily administered on an as needed basis, versus retaining a corporate officer trying to move on with his/her life.Our services do not replace lawyers, investment bankers or accountants, but our involvement can make their work more cost effective.The mechanics of transitioning to a liquidating trust are straightforward, but are not standard fare for these high priced professionals.
The company is not affiliated with or acting on behalf of or at the direction of HUD/FHA or any other government agency.
In the role of liquidating trustee, (beginning before the trust is formed) we administer and manage the liquidating trust to sell remaining assets, settle open contracts, pay creditors and distribute any available funds to the company’s former stockholders. On the contrary, we prefer to be retained early enough in the wind down process to avoid insolvency and transition smoothly from the public entity to the liquidating trust structure.