Scribd Logo
Upload

Welcome to Scribd!

  • Chap+21+corrected Slide

    Uploaded by

    Jack
    13 views1 page
    When a shareholder receives a liquidating distribution from a corporation, if the shareholder's adjusted basis in the stock is greater than the amount received (inside basis > outside basis), the shareholder recognizes a loss. If the inside basis is less than the outside basis, the shareholder recognizes a gain. If the only assets distributed are money or "hot assets," and the inside basis is less than the outside basis, the shareholder recognizes a loss.

    Original Description:

    ACIS 4314 Chapter 21

    Original Title

    Chap+21+corrected slide

    Copyright

    © © All Rights Reserved

    Available Formats

    PPT, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    When a shareholder receives a liquidating distribution from a corporation, if the shareholder's adjusted basis in the stock is greater than the amount received (inside basis > outside basis), the shareholder recognizes a loss. If the inside basis is less than the outside basis, the shareholder recognizes a gain. If the only assets distributed are money or "hot assets," and the inside basis is less than the outside basis, the shareholder recognizes a loss.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    13 views1 page

    Chap+21+corrected Slide

    Uploaded by

    Jack
    When a shareholder receives a liquidating distribution from a corporation, if the shareholder's adjusted basis in the stock is greater than the amount received (inside basis > outside basis), the shareholder recognizes a loss. If the inside basis is less than the outside basis, the shareholder recognizes a gain. If the only assets distributed are money or "hot assets," and the inside basis is less than the outside basis, the shareholder recognizes a loss.

    Copyright:

    © All Rights Reserved
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as ppt, pdf, or txt
    of 1

    Liquidating Distributions

    When

    to recognize gain/loss in a liquidating


    distribution
    Inside basis > outside
    basis

    Inside basis < outside


    basis

    Money distribution only

    Gain recognized

    Loss recognized

    Money and hot assets


    only

    N/A

    Loss recognized

    21-1

    You might also like