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If the governing state allows dissolved corporations to retain assets, the corporation can continue to exist.
Liquidation marks the point when a corporation has committed to closing its doors.
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.
Before you can figure out the tax effects of the liquidation, you'll need to know your adjusted tax basis in the partnership.