Historically, the Code required that the amount of the distribution (and the basis of the property in the hands of the
distributee thereafter) was the lesser of (1) the fair market value of the property, and (2) the basis of the property in the hands of the distributor plus gain recognized.(75) In a consolidated return, however, the amount was simply the latter--basis plus gain recognized.(76) After the enactment of section 311(b), in the case of appreciated property, fair market value and basis plus gain recognized yielded the same amount.
an Atlidavrt tot Collection of Small Estate by
Distributee was Tiled with respect to the Estate ot Harold J Hamilton, deceased, with the Clerk ot the Probate Division ot the Circuit Court ol Pulaski County.
732(c) was legislatively amended in 1997 to make the allocation rules look to the relative values, rather than the relative bases, of distributed assets with an overall increase to the tax bases in the hands of the
distributee partner, it appeared that the mandatory piece of Sec.
For distributions not used to pay for QHEEs, the earnings portion will continue to be inducible in the gross income of the
distributee.
Proposed Treasury regulations section 1.367(b)5 provides that, in a distribution otherwise described in section 355, if the distributing corporation is domestic and the distributed entity is foreign, the distributing corporation will recognize gain if the
distributee shareholder is an individual and not a U.S.
[sections] 1.1502-130)(1)(ii), however, the
distributee is considered a successor and any reference to a member includes a reference to the successor.
Section 336 provides that, with the exception of property distributed to a parent in complete liquidation of a subsidiary, gain or loss is recognized to a liquidating corporation on the distribution of property in complete liquidation as if such property were sold to the
distributee at the fair market value.
On March 28, 2014, an Affidavit for Collection of Small Estate by
Distributee was Filed with respect to the Estate of Harold J.
On the deemed distribution to the original partnership's partners, assuming that each partner receiving the deemed distribution has sufficient outside basis in its partnership interest, the
distributee partners generally also will take a substituted basis in the distributed resulting partnership.
Because the
distributee partner's gain would yield an asset basis increase for the partnership.
The 1986 Act provided that gain loss generally is recognized by a corporation on liquidating distributions of its property as if the property had been sold at fair market value to the
distributee. See Staff of the Joint Committee on Taxation, General Explanation of the Tax Reform Act of 1986, 99th Cong., 2d Sess.
The amount and character of the gain or loss is determined as if the LLC had sold the property to the
distributee member for its FMV on the date of distribution.