Corporation's Consequences Appreciated non-cash property produces gain as if corp sold property for FMV on distribution date LOSS recognition NOT permitted If liabilities exceed fmv then fmv is assumed to be no less than amount of the liability 1313 Corporation’s Consequences Appreciated non-cash property produces gain as if corp sold property for FMV on distribution date Loss recognition NOT permitted If liabilities exceed FMV, then FMV is assumed to be no less than amount of the liability