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Corporation has -$1,000 current earnings and profits and -$2,000 accumulated earnings and profits. It makes a $100 distribution to a shareholder. This shareholder: Will treat
Corporation has -$1,000 current earnings and profits and -$2,000 accumulated earnings and profits. It makes a $100 distribution to a shareholder. This shareholder: Will treat the distribution as a dividend Will always, in part, treat this distribution as a return of capital Will always, in part, treat this distribution as a capital gain Will always have no taxable income because the corporation is in a negative position
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