Liquidating Distributions in a Corporation or Partnership   New

Upon successful completion of this course, the user should be able to:

• identify the federal income tax consequences of complete and partial corporate liquidations, including gain or loss recognition, shareholder basis considerations, and limitations applicable to loss property;

• differentiate the tax treatment of corporate liquidating distributions from partnership liquidating distributions, including the ordering and basis-allocation rules applicable to partnership property distributions; and

• apply the rules governing partnership hot assets, disproportionate distributions, and retiring-partner payments to determine when amounts are treated as ordinary income rather than capital gain.