Liquidating limited partnerships
Dissolved Company Assets: Once a company has been dissolved, the assets of the dissolved company become State property.
Stated differently, think of a partnership as a zero sum entity.
R first reduces his ,000 outside basis by the ,000 cash distribution.
His remaining ,000 of basis in his LLC interest becomes his basis in the distributed real property (Sec. Z does not recognize any gain on the distribution although the FMV of the property R receives (,000) exceeds its ,000 Example 2.
A company can be dissolved either through liquidation or through the strike-off process.
Please also find links to information on Examinership and Receivership.