If a liquidating subsidiary corporation primarily has loss property to distribute, the parent corporation should

Question

Quizplus · Accepted Answer

The parent corporation should avoid Sec. 332 rules because under these rules, the parent would not recognize any loss on the distribution of loss property. Instead, the parent may prefer to recognize the loss by not applying Sec. 332, which would allow the loss to be recognized for tax purposes.

If a Liquidating Subsidiary Corporation Primarily Has Loss Property to Distribute