Bargain Purchase

Bargain Purchase

Bargain Purchase means:
the purchase, by the shareholder of a corporation, of property owned by the corporation for less than fair market value; the difference is treated as a distribution.

Example of Bargain Purchase:

Learn more about tax examples, explanations and calculations here.

A corporation sells an asset worth $1,000 to a shareholder for $700. The $300 .inference is treated as a distribution.


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