Unformatted text preview: capital to the extent of the shareholder’s basis in the stock. Once the distribution exceeds basis, the excess is treated as a capital gain. Thus, a distribution is non-taxable if it is in excess of the E&P of the corporation and the excess is less than the shareholder’s basis in the stock....
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This note was uploaded on 09/16/2011 for the course ACCT 145 taught by Professor Eric during the Spring '11 term at Palm Beach Community College.
- Spring '11