ETAX Corporation Redemptions and Liquidations R17-207X

Provide the treatment for gains or losses made by corporations in a complete liquidation.

• Gain or loss = FMV of property distributed less adjusted basis of the property.
• The FMV of the property cannot be less than the value of debt, if any.
• The character of gain or loss is determined by the nature of the asset, that is, ordinary, capital or section 1231.