Pomsky, Inc. has $0 in current E&P and $0 in accumulated E&P.  Pomsky distributes land with a fair market value of $100,000 and a tax and E&P basis of $20,000 to its sole shareholder, Bob. Before the distribution, Bob had a tax basis in his Pomsky stock of $60,000. The tax consequences of the distribution to Bob would be?

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The distribution of land by Pomsky Inc to its sole shareholder Bob would have the following tax cons... View the full answer