[Anonymous]

Hi All.

Any insights onto the effect on E&P when a distribution has liabilities the shareholder will assume? Is the reduction the FMV or the FMV net of the assumed liabilities

Thanks in advance

[Anonymous]

Effect of property distributions on E&P:

Increase by gain recognized

Increase by liabilities distributed

Decrease by greater of FMV or adjusted basis of property distributed

[Anonymous]

Huh so neither of my options. its really its in addition if there was a gain and it passed the liability to the Shareholder. I cant remember if I saw that before (sure I did and forgot) makes sense though thanks alot

[Author]

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