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Evaluate the tax impact of property dividends by computing the shareholder's dividend income, basis in the property received, and the effect on the distributing corporation's
Evaluate the tax impact of property dividends by computing the shareholder's dividend income, basis in the property received, and the effect on the distributing corporation's E & P and taxable income
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Ans A corporation may distribute a property dividend for various reasons For Example the shareholders might want a particular property that is held by the corporation Similarly a corporation with low cash reserves may still want to distribute a dividend to its shareholders Property distributions have the same impact as cash distributions except for effects related to any difference between the basis and the fair market value of the distributed property Effect on the shareholders When a corporation distributes property rather than cash to a shareholder ...
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South Western Federal Taxation 2016 Corporations Partnerships Estates And Trusts
Authors: James Boyd, William Hoffman, Raabe, David Maloney, Young
39th Edition
978-1305399884
