Tan Corporation purchased depreciable tangible personal property for $100,000 in 2020 and immediately expensed the entire cost

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Tan Corporation purchased depreciable tangible personal property for $100,000 in 2020 and immediately expensed the entire cost under § 179. In 2022, when the property was worth $80,000, Tan distributed it as a dividend to the corporation’s sole shareholder. What was the tax status of this property for Tan? What is the nature of the recognized gain or loss from the distribution of the property?

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South Western Federal Taxation 2023 Comprehensive Volume

ISBN: 9780357719688

46th Edition

Authors: Annette Nellen, Andrew D. Cuccia, Mark Persellin, James C. Young

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