Nonliquidating distribution


14-Dec-2020 23:55

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Thus, the shareholder would report the ,500 dividend (the fair market value) on his personal return and pay tax a second time.

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Winning such an argument can be difficult and costly. If you want to get rid of loss property, the best approach is to have the corporation sell the property, then distribute the cash.

The result would be similar if Madison is a regular corporation, except that the tax would have to be paid at the corporate level.