For purposes of the related-party loss limitation in the context of a liquidating distribution,a corporation and a shareholder are considered related if the shareholder owns (directly or indirectly)more than 50% in value of the corporation's outstanding stock.

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The statement is true. According to the related-party loss limitation rules, a corporation and a shareholder are considered related if the shareholder has more than 50% ownership (either directly or indirectly) in the corporation's outstanding stock. This is important in determining the tax treatment of losses upon liquidation distribution to a related shareholder.

For Purposes of the Related-Party Loss Limitation in the Context