Shareholder Consequences In non-cash distributions. amount of income equal to FMV of property received minus liabilities assumed Amount of distribution cannot be <o S/h's basis in non-cash property is FMV on distribution date Holding period of property begins day after distribution date 1212 Shareholder Consequences In non-cash distributions, amount of income equal to FMV of property received minus liabilities assumed Amount of distribution cannot be <0 S/h’s basis in non-cash property is FMV on distribution date Holding period of property begins day after distribution date