Noncorporate shareholders may elect out of § 368 and recognize losses when property subject to a liability is distributed to them in a corporate reorganization.

Question

Quizplus · Accepted Answer

Noncorporate shareholders cannot elect out of § 368 to recognize losses in a corporate reorganization, as § 368 provides for non-recognition of gain or loss in such transactions.

Noncorporate Shareholders May Elect Out of § 368 and Recognize