When loss assets are distributed by an S corporation, a shareholder's basis is equal to the asset's fair market value.

Name: When loss assets are distributed by an S corporation, a shareholder's basis is equal to the asset's fair market value.
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A shareholder's basis in a loss asset distributed by an S corporation is equal to the asset's fair market value because the shareholder is not taxed on the gain or loss from the distribution.

When Loss Assets Are Distributed by an S Corporation, a Shareholder's