C11-Chp-13-1C-NonLiquidating Cash Dist

C11-Chp-13-1C-NonLiquidating Cash Dist -...

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45e1852bca7c72d4a7dc020c91b0b04c067c35dd.xls Page 1 of 2 They each take a "current" distribution of half of the cash. Jan takes $20,000 in cash. Joe also. If entity is assumed to be a partnership, Jan has capital with basis of $35,000 and FMV of $50,000. Joe Also. Assets Basis FMV This analysis is for Joe Cash $40,000 $40,000 <==Dist. who owns 50% of company. Land $30,000 $60,000 Total $70,000 $100,000 C Corp S Corp Ptship Cash distributed to Joe $20,000 $20,000 $20,000 1 Joe's first layer -AAA- S Corp- Sec. 1368(c)(1) 3 Joe's return of capital. Sec. 301( c)(2), 1368( c)(3), 731(a)(1) 4 Adjusted basis 5 Joe's cap. gain. Sec. 301( c)(3),1368( c)(3), 731 6 Joe's ending basis in entity ## C Corporation (Distributions- Sec. 301, 312(a),(b), 316, 317) 1 Not applicable 2 Sec. 301 covers "property" distributions, defined in 317. 301 a Under Sec. 317, "property" is everything "except stock dividend." 317 301 c 1
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C11-Chp-13-1C-NonLiquidating Cash Dist -...

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