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Level 1
posted Mar 18, 2022 4:32:18 PM

Form 1120 Schedule K Line 17

This question asks "During or subsequent to this tax year, but before the filing of this return, did the corporation dispose of more than 65% (by value) of its assets in a taxable, non-taxable, or tax deferred transaction?"

 

Two questions: 

1 - what is purpose of this question? If you answer yes then what does that trigger or factor into? the instructions don't really say anything on this question.

 

2 - If corp had significant crypto sold during year and if large enough in value to meet that 65% threshold, it seems like the correct answer would be yes but like with everything crypto it feels a bit grey/uncertain

 

Thanks in advance!

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1 Best answer
Level 15
Mar 18, 2022 4:39:06 PM

Considered a liquidation (partial), but this is referring to business assets (including the likes of cash) and not portfolio investments.

2 Replies
Level 15
Mar 18, 2022 4:39:06 PM

Considered a liquidation (partial), but this is referring to business assets (including the likes of cash) and not portfolio investments.

Level 1
Mar 19, 2022 7:40:00 AM

Thank you!