Partial Liquidation

Partial Liquidation means:
distributions from a corporation to corporate and noncorporate shareholders, which may receive capital gain treatment. To qualify, a distribution to a corporate shareholder must be one of a series of distributions in redemption of all of the stock of the corporation pursuant to a plan. A noncorporate shareholder receives capital gain treatment if the distribution is not essentially equivalent to a dividend or results in the termination of an active business. Former IRC (check if this IRC provision is current here) §§302(e) and 346.

See also other Tax Terms and Definitions in U.S.A.

liquidation; contrast with the entry complete liquidation.

See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.

See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.