If a corporation has no E&P,a distribution is ordinary income to the extent of the shareholder's basis with any excess treated as capital gain.

Name: If a corporation has no E&P,a distribution is ordinary income to the extent of the shareholder's basis with any excess treated as capital gain.
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A distribution is a return of capital to the extent of the shareholder's basis, and any excess over the basis is treated as capital gain.

If a Corporation Has No E&P,a Distribution Is Ordinary Income