Liquidating real estate
The Bottom Line: As Plan Administrator of the million liquidating Chapter 11 bankruptcy estate, Stapleton Group quickly overcame the contentious and litigious shareholder’s challenges to recover approximately 67% of investor claims by: The Business Issue: Over the course of 30 years, multiple generations of families had invested approximately million in an entrepreneur’s real estate empire in exchange for promissory notes paying interest at about 8% per annum.After the 2008 real estate market crash, the debtor could not afford 8% interest and reduced it to approximately 2% before ceasing payments altogether.Any liquidating distribution you receive is not taxable to you until you have recovered the basis of your stock.After the basis of your stock has been reduced to zero, you must report the liquidating distribution as a capital gain.
If you receive distributions from the corporation in complete liquidation, you must divide the distribution among the blocks of stock you own in the following proportion: the number of shares in that block over the total number of shares you own. Whether you report the loss as a long-term or short-term capital loss depends on how long you held the stock.
Whether you report the gain as a long-term or short-term capital gain depends on how long you have held the stock.
Q: What are the tax implications for Box 8, Cash Liquidation Distributions for Non-Taxable Accounts (such as IRAs)?
With certain limitations, we will invest in real estate asset categories as well as most positions throughout the capital structure.
Currently, we own a diverse group of properties, loans, securities and other real estate related assets.