The liquidation of a subsidiary corporation must be completed within one tax year to receive nonrecognition treatment.

Question

Quizplus · Accepted Answer

The liquidation of a subsidiary does not need to be completed within one tax year to receive nonrecognition treatment under certain sections of the Internal Revenue Code, such as Section 332, which allows for a tax-free liquidation of a subsidiary if certain conditions are met, without specifying a one-year completion requirement.

The Liquidation of a Subsidiary Corporation Must Be Completed Within