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JLcpa
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Joined: 22 Sep 2009
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Posted: 04 May 2011 at 06:02 \| IP Logged

When an S Corp distributes an asset with a FMV of say $10000 & basis of $13000, is the FMV considered to compute the new basis of the shareholder?

This is the only place where we use the FMV, isn't it?

When Partnerships distribute assets to partners, partners use the partnership's basis in the asset to calculate their new basis.

Please correct if wrong. Thanks!

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jl0329
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Posted: 04 May 2011 at 09:38 \| IP Logged

You are right, for S corp. property distribution. The FMV
is used.

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