Louisiana § RS 47:137 - Recognition of gain or loss; certain liquidations; sales or exchanges of qualified conservation property

§ RS 47:137. Recognition of gain or loss; certain liquidations; sales or exchanges of qualified conservation property

A.  General rule.  If, within the twelve-month period beginning on the date on which a corporation adopts a plan of complete liquidation, all of the assets of the corporation are distributed in complete liquidation, less assets retained to meet claims, then no gain or loss shall be recognized to such corporation from the sale or exchange by it of qualified conservation property within such twelve-month period.

B.  Qualified conservation property defined.  For the purposes of this Section, the term "qualified conservation property" shall mean and include immovable or real property, or any interest therein, of a corporation that is sold or transferred in an exchange to the state of Louisiana for wildlife, scenic, recreation, or conservation purposes.

C.  Effect on shareholders.

(1)  Situs of stock cancelled or redeemed in liquidation.  A pro rata portion of each shareholder's stock cancelled or redeemed in a liquidation described in Subsection A shall, for purposes of determining taxable gain under this Chapter, be deemed to have its taxable situs in this state based on the ratio of the total net proceeds of all sales or exchanges of qualified conservation property in which no gain or loss is recognized to the liquidating corporation by reason of Subsection A to the total amount of corporate liquidating distributions of such corporation.

(2)  Withholding of tax.  The liquidating corporation shall pay unto the secretary of the Department of Revenue prior to its final liquidation an amount equal to two and four tenths (2.4%) percent of the net proceeds of all sales or exchanges of qualified conservation property in which no gain or loss is recognized to the liquidating corporation by reason of Subsection A.  Said amount paid unto the secretary shall be considered a withholding of tax due by shareholders and attributable to their receipt of liquidation distributions and shall be allowed as a credit to the corporation's shareholders on a pro rata stock ownership basis against Louisiana income taxes due by each shareholder in the taxable year in which the shareholder reports the final corporate liquidation distribution.

Added by Acts 1983, No. 422, §1, eff. July 2, 1983.  Acts 1997, No. 658, §2.

{{NOTE:  SEE SCR NO. 178, 1987 R.S. FOR LEGISLATIVE INTENT.}}