Last year, Boone decided to terminate the S corporation election of his solely owned corporation...
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Last year, Boone decided to terminate the S corporation election of his solely owned corporation in preparation for taking the company public. At the time, the corporation had AAA of $ and $ of accumulated E&P from prior C corporation years. Boone had a basis in his S corporation stock of $ During the firm reported $ taxable incomeloss and made distributions of $ cash and $ cash to Boone.
Boone terminated his S election effective September The distributions were paid on September st and September th The September th distribution was a property noncash distribution FMV and AB were both $ rather than a cash distribution. How will the distributions be taxed ie dividend, tax free return of capital, or capital gain
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