The tax basis of property received by a noncorporate shareholder in a complete liquidation will be the property's fair market value.
Because the transaction is taxable to noncorporate shareholders, the basis of property received equals its fair market value.

Question

Quizplus · Accepted Answer

When a noncorporate shareholder receives property in a complete liquidation, it is generally a taxable transaction. In this case, the tax basis of the property received equals its fair market value. Therefore, the statement is true.

The Tax Basis of Property Received by a Noncorporate Shareholder