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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