Implications of liquidating
A bigger worry is always what if a creditor applies for the liquidation of the entity.
There are two primary types of individual retirement accounts: traditional IRAs and Roth IRAs.
If one does not own property and if one does not have a certain amount of cash, then one cannot sequestrate.
The reason for this is, because, in terms of the Companies Act, the Close Corporations Act and the Trust Property Control Act, a Company, or a Close Corporation or a Trust (“the entity”) is insolvent the moment its liabilities exceed its assets. For this reason the entity does not have to own assets to be liquidated.Sometimes it is a difficult decision to make whether to liquidate an entity or not.Sometimes entities are on the edge of solvency and insolvency.A: No, in addition to the initial liquidating distribution, we expect to make one or more additional liquidating distributions in First Quarter 2017.Q: How will the initial liquidating distribution be reported for tax purposes?
A: The initial liquidating distribution, along with the operating distributions received in 2016, will be reported to shareholders on their 2016 Form 1099-DIV, which we expect to be mailed on or before January 31, 2017.