Section 332 will apply to a parent-subsidiary liquidation even if the subsidiary corporation is insolvent on the date of the liquidation.

Name: Section 332 will apply to a parent-subsidiary liquidation even if the subsidiary corporation is insolvent on the date of the liquidation.
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Section 332 of the Internal Revenue Code applies to tax-free liquidations of solvent subsidiaries. If the subsidiary is insolvent, the liquidation does not qualify under Section 332.

Section 332 Will Apply to a Parent-Subsidiary Liquidation Even If