Consequences of Non liquidating Distributions Shareholder consequences Corporations consequences Example c4-15 Example C4-16 Distribution's effect on e&P 11
11 Consequences of Nonliquidating Distributions Shareholder consequences Corporation’s consequences Example C4-15 Example C4-16 Distribution’s effect on E&P
Shareholder Consequences In non-cash distributions. amount of income equal to FMV of property received minus liabilities assumed Amount of distribution cannot be <o S/h's basis in non-cash property is FMV on distribution date Holding period of property begins day after distribution date 12
12 Shareholder Consequences In non-cash distributions, amount of income equal to FMV of property received minus liabilities assumed Amount of distribution cannot be <0 S/h’s basis in non-cash property is FMV on distribution date Holding period of property begins day after distribution date