Code Sections-MC2- Non liquidating distributions

Question 1

301

Answer 1

treatment to shareholders

distributions of property-applies if 302 does not

Question 2

301 (a)

Answer 2

treatment to shareholders

reference to 301(c)

Question 3

301 (b)

Answer 3

treatment to shareholders

amount distributed: Cash + FMV- Liabilities

Question 4

301 (c)

Answer 4

treatment to shareholder
amount taxable
(1) dividend
(2) return of capital 
(3) capital gain

Question 5

301 (d)

Answer 5

treatment to shareholders

basis of distributed property (FMV)

Question 6

301 (e)

Answer 6

treatment to shareholders

Special E&P rule for distributions to 20% owned corporate shareholders

Question 7

311

Answer 7

taxability to distributing corporation

Question 8

311 (a)

Answer 8

taxability to distributing corporation

no loss recognized on the distribution of cash or depreciated( in value) property

Question 9

311 (b)

Answer 9

taxability to distributing corporation

gain recognized on the distribution of appreciated (in value) property

Question 10

312

Answer 10

effect on earnings and profits

Question 11

312 (a)

Answer 11

effect on earnings and profits

general rule: Reduction of E&P for distributions

Question 12

312 (b)

Answer 12

effect on earnings and profits

distributions of appreciated property

Question 13

312 (c)

Answer 13

effect on earnings and profits

adjustments for liabilities

Question 14

312 (d)

Answer 14

effect on earnings and profits

stock distributions

Question 15

312 (f)

Answer 15

effect on earnings and profits

effect of gains, losses, and nontaxable distributions

Question 16

312 (k)

Answer 16

effect on earnings and profits

effect of depreciation

Question 17

312 (n)

Answer 17

effect on earnings and profits

adjustments to accurately reflect economic gain or loss

Question 18

316 (a)

Answer 18

dividend defined- General rule: distribution a dividend to the extent of E&P

Question 19

317

Answer 19

other definitions

(a) property
(b) redemption of stock