Original capital contribution $ 1,000,000
Cumulative tax losses over 15 years ($1,500,000)
Cash flow distributed over 15 years ($50,000)
Tax capital account prior to sale ($550,000)
Sales proceeds distributed ($250,000)
Tax capital account upon liquidation ($800,000)
Gain from sale and liquidation $800,000
Estimated corporate tax rate 35%
Estimated tax on sale and liquidation $280,000
