AC430 Assignment-Unit 5.doc(1)

AC430 Assignment-Unit 5.doc(1) - Gloria Deal AC 430-01...

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Gloria Deal AC 430-01 Advanced Tax Corporate Unit 5 Assignment Professor: Nadia Das September 26th, 2011 6-5: Ordinary Dividends Stock Redemption Complete Liquidation Shareholder the distribution amount must recognize gain or
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can reduce the basis in their stock, then the remainder is taxed as a capital gain/loss. that is received by the shareholder in exchange for stock is treated as a dividend when and if the distribution meets certain requirements, the amount can be offset by the adjusted basis and then be treated as a capital gain or loss loss adjusted basis is the FMV if the property that is received from liquidation, the holding period begins the day after the liquidation any liabilities that are assumed reduce realized gain Distributing Corporation has no gain or loss that is recongized, and the corporation is distributing the profits which have already been taxed. -No loss is recognized when the stock is redeemed by distributing property that has declined in its value -recognizes
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AC430 Assignment-Unit 5.doc(1) - Gloria Deal AC 430-01...

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