As a result, the tax effects of a partnership that makes liquidating distributions only impacts the partners who receive them.
To be taxed as a liquidating distribution, however, a partner's interest in the partnership must terminate.
You proceed at your own pace; set your own schedule.
Only partners who receive a liquidating distribution of cash may have an immediate taxable gain or loss to report.
The value of marketable securities, such as stock investments that are traded on a public stock exchange, and decreases to your share of the partnership's debt are both treated as cash distributions.
While S corporations are corporations for purposes of state law, not all states recognize the "S" corporation for income tax purposes.
The "S" corporation is recognized in Massachusetts but not in New Hampshire for instance.