ACC317 Advanced Federal Taxation

Accounting
Tutor: None Selected Time limit: 1 Day

Discuss other potential consequences to shareholders that could result from the liquidation of a closely held corporation?

Oct 21st, 2015

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Remember that Section 331 considers liquidating distribution to be a full payment of the shareholder’s stocks in the corporation. In this regard, the shareholder will recognize a gain or loss under Sec. 331. On the other hand, if the shareholder received assets in exchange for her shares during the liquidation, and that these assets are later for sale by the shareholder, then the shareholder’s gain or loss is the difference between the asset’s fair market value at the liquidation and the shareholder’s basis for her shares.


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Oct 21st, 2015

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Oct 21st, 2015
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Oct 21st, 2015
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