Distributions of which assets during an S corporation's post-termination period receive favorable income tax treatment?

Question

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During an S corporation's post-termination period, distributions of cash receive favorable income tax treatment. This is because cash is considered a liquid asset, and the IRS allows S corporations to distribute liquid assets tax-free during the post-termination period. Other assets, like the investment portfolio or real estate, may be subject to taxes upon distribution or sale. Notes receivable may also be subject to taxes if they have appreciated in value since their creation.

Distributions of Which Assets During an S Corporation's Post-Termination Period