To clarify a point:
- If upon liquidation of old S corp there were assets distributed, those were distributed out at FMV and reported on form 1099-DIV.
- There was a true (recognized) gain or loss on this event.
- As a result, if those same assets were then contributed to a new S corp, their basis is FMV (not adjusted basis from the old S corp).
*A reminder that posts in a forum such as this do not constitute tax advice.
Also keep in mind the date of replies, as tax law changes.
