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In the normal course of operations the owners usually take distributions of money or property from their business. What is the taxability of current distributions of money or property from the business to the owner when the business is a C corporation, an S corporation or a partnership?

Do not discuss liquidating distributions with this question. Regarding C corps. How is a distribution taxed to the corporation and the shareholder? Assume a C corp. has $1,000 in current E&P and $10,000 in accumulated E&P. The C corp. makes a distribution of land (FMV of $20,000, basis of $16,000) and $7,000 cash to its sole shareholder. The shareholders basis in the C corp. stock is $8,000. What is the tax treatment of the distributions to the corporation and to the shareholder? Regarding S corps. you need to bring it all together. How is a distribution taxed to the shareholder if the S corp. has accumulated E & P and AAA. For example, assume an S corp. has accumulated E & P of $1,000, AAA of $5,000 and makes a $7,000 cash distribution to the shareholder. Also assume the shareholder's basis in the S corp. stock is $5,500. How is this distribution taxed to the shareholder? Regarding partnerships, you also need to bring it all together. For example, assume the ABC partnership distributes $5,000 cash, $1,000 in unrealized receivables (zero inside basis), $3,000 in inventory ($1,000 inside basis) and a piece of machinery (FMV of $3,000 and $500 inside basis) to a partner who has an outside basis of $10,000. How are these distributions taxed to the receiving partner?

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