Unformatted text preview: Exception for none-dividend distribution, to the extent that it exceeds the adjusted basis of the stock and to the extent that it is out of increase in value accrued before March 1, 1913, is tax exempt. 4. Basis Xiaomin Zhang The basis of the property received in a distribution is its fair market value. 5. Special rule for certain distributions received by 20 percent corporate shareholder (1) In general For the purposes of determining the taxable income of any 20 percent corporate shareholder, section 312 shall be applied with respect to the distributing corporation as if it did not contain subsections (k) and (n) thereof. (2) Who is 20 percent corporate shareholder Shareholder which owns at least 20 percent of the total combined voting power of all classes of stock entitled to vote or at least 20 percent of the total value of all stock of the distribution corporation....
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- Spring '14