ACRS- alternative (Alternative depreciation system) 1.
Then, the shareholders are treated as exchanging their stock for the FMV of the assets distributed in complete liquidation, with the resulting gains or losses at the shareholder level.The maximum tax rate for both long-term capital gains (realized after May 5, 2003, and before 2013) and dividends (for tax years beginning after 2002 and before 2013) is 15%.For taxpayers in the 10% or 15% ordinary tax brackets, there is no tax on most long-term capital gains and dividends realized after 2009 and before 2013.The version you download will have its original formatting intact and so will be much prettier to look at. 302(c)(2) if it exceeds E&P, then a tax-free recovery of SH's stock basis. 301(c)(3) if it still exceeds basis, treated as capital gain. (actual capital gain, taxed at capital gain rate, 15% or 20%, this can be deducted by capital loss) Earnings and Profits a.