A liquidating corporation

Question

Quizplus · Accepted Answer

A liquidating corporation recognizes gains and losses on the distribution of property. This is because, during the liquidation process, the corporation distributes its assets to its shareholders, and any gains or losses realized from these distributions need to be recognized for tax purposes. However, the recognition of gains and losses may be affected by various factors, such as the tax basis, fair market value, and holding period of the distributed property.

A Liquidating Corporation