Question: A liquidating corporation could either (1) sell its assets and then distribute remaining cash to its shareholders or (2) distribute its assets directly tothe shareholders

A liquidating corporation could either (1) sell its assets and then distribute remaining cash to its shareholders or (2) distribute its assets directly to the shareholders who then sell the distributed assets. Do the tax consequences of these alternatives differ?

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Generally no In most cases the results of the two alternatives are the same If the corporation sells ... View full answer

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