The ResCap Liquidating Trust was established in December 2013 under the Second Amended Joint Chapter 11 Plan of Residential Capital, LLC, et al. to liquidate and distribute assets of the debtors in the ResCap bankruptcy case. SPECIAL ANNOUNCEMENT DATED 12/14/2018: In response to a handful of inquiries regarding the timing of a potential distribution to holders of LTIs, while the bankruptcy court agreed with the Trust's position regarding the expungement of claims, the bankruptcy court has not entered an order in connection therewith. Introduction. This publication provides information on the tax treatment of investment income and expenses. It includes information on the tax treatment of investment income and expenses for individual shareholders of mutual funds or other regulated investment companies, such as money market funds. Section 338(h)(10) S Corporation Checklist (Rev. 9/05) PREFACE When the shareholders of an S corporation decide to dispose of their interests in the corporation in a taxable transaction, they have several alternative methods to effectuate Even though the S corporation’s assets do not receive a basis step-up upon a shareholder’s death, the deceased shareholder’s estate may be able to leverage the stepped-up basis of the deceased shareholder’s stock to reduce tax on the sale of the assets. To do so, the corporation must liquidate and distribute assets in the year of the deceased shareholder’s death. 26 CFR 1.1445-5 - Special rules concerning distributions and other transactions by corporations, partnerships, trusts, and estates. The owners of a C corporation might consider a conversion to a passthrough entity as a means to retain the limited liability and transferability of ownership that the corporate entity provides, while avoiding the double taxation of corporate earnings. Distributions: Answers to frequently asked questions regarding distributions for claims Distribution Record Date: As a prerequisite to a distribution to unsecured creditors holding allowed claims in Class 3A, the Litigation Trustee of the NP Creditor Litigation Trust is required to establish a "Record Date" for purposes of determining the addresses to which distributions will be delivered. The Tax Department of Farrell Fritz has created this blog to provide meaningful information and to elicit discussion regarding those Federal and New York tax issues which are of particular concern to closely-held business organizations and their owners. Current Distributions . A current distribution is a distribution that does not terminate a partner’s interest in the partnership. If, however, a distribution is part of a series of distributions.