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Liquidations and stock redemptions that are treated as exchanges have many similar tax consequences to the corporation and its shareholders. These include the following, except:
Liquidations and stock redemptions that are treated as exchanges have many similar tax consequences to the corporation and its shareholders. These include the following, except:
The corporation must recognize depreciation recapture. | ||
The corporation may recognize a loss on the distributed property. | ||
The shareholder receives a fair market value basis in the distributed property. | ||
E&P is either reduced or eliminated. |
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