Question
What happens in a taxable complete liquidation to the shareholder's gain or loss?
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Answer
Capital gain or loss equals FMV received minus stock basis.
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Question
How is a property distribution taxed to the corporation?
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Answer
The corporation recognizes gain as if sold at FMV, but not loss.
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Question
What is the main depreciation adjustment when computing E&P?
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Answer
Excess MACRS over straight-line ADS is added back.
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Question
Why is a subsidiary liquidation under section 332 generally tax-free to the parent?
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Answer
The parent recognizes no gain or loss and takes carryover basis.
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