Legal Question in Tax Law in Washington

Re: Leasehold improvement-gain to shareholder?

If anything, it would seem to be a dead loss to the shareholder.

Perhaps I don't understand. Are you the founder and the sole shareholder?

I should think that when the lease is abandoned, the leasehold improvements

become the property of the lessee (owner) at that point, and could become

windfall income of some sort, but are probably capital in nature and need

not be declared as current income, ... I'm just spitballing on that part,

but from the other point of view, the corporation is LOSING those assets;

that might accelerate the nature of the loss from the old depreciation

schedule you had them on give you a one-time loss to declare.

I don't see where the shareholders ( AS shareholders ) have any dividends

in the eyes of the IRS. If you wanted to, though, and the founder is

the sole shareholder, you could declare a dividend and have it treated

that way: 100% of the shareholders receive 100% of the leasehold

improvements as a dividend, payable dddate to shareholders of record on

dddate, etc.

Send me more information, including numbers and what you'd prefer to have

happen.

Stuart Williams

Law Offices of Stuart J. Williams

21 Walter St.