Liquidating business nz

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In certain cases in which the distributee is a corporation in control of the distributing corporation, the distribution may not be taxable.

For more information, see Publication 541, Partnerships (PDF).

When is the time to consider the asset liquidation process?

The three main reasons businesses consider liquidating assets are 1) when assets are no longer needed (surplus assets), 2) the business needs additional working capital, or 3) to satisfy creditors.

Evaluate the costs involved in your asset disposition plan as well as the potential costs (legal and otherwise) of not doing it.

Create an aggressive, yet realistic timeline for completion, and methodically begin the process.

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