General Utilities Doctrine financial definition of General Utilities Doctrine. General Utilities Doctrine finance term by the Free Online Dictionary.

General Utilities Doctrine

A former provision in U.S. tax law allowing a corporation to liquidate its assets at a profit and pass on the profit to its shareholders without paying a corporate tax. Shareholders, however, remained responsible for taxes on what amounted to a special dividend. The general utilities doctrine allowed shareholders to avoid double taxation in the liquidation of assets. It was abolished by the Tax Reform Act of 1986.

General Utilities Doctrine

An Internal Revenue Service provision that permits a firm to liquidate its assets at more than book value and to pass the proceeds of the liquidation through to stockholders without making the firm pay income taxes on the gains. Rather, stockholders receiving the distribution are required to report the gain (but not the entire liquidation) as income. The General Utilities Doctrine was repealed in 1986 tax reform. As a result of the repeal, any gain from liquidation is taxed twice: once to the liquidating firm and again to the stockholders.

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Liquidating Dividend	1374 generally is designed to prevent a C corporation from circumventing the repeal of the General Utilities doctrine by converting to S corporation status before distributing appreciated assets to its shareholders or before selling appreciated assets and distributing the sale proceeds to its shareholders as part of a complete liquidation. Recent amendment to sec. 1374 provides limited opportunity for S corps by Harris, Deanna Walton; Kugler, Paul F. / The Tax Adviser In general, two taxes are due under sections 336 and 301 of the Internal Revenue Code upon dissolution of a C corporation because of the repeal of the so-called General Utilities doctrine by Tax Reform Act of 1986. Turning back the clock: taxpayers avoid general utilities repeal ... by Petersen, Kagney / Tax Executive In 1986, Congress repealed the last element of the General Utilities doctrine. Calculating gain on corporate distributions by Schnee, Edward J. / Journal of Accountancy	general bill of sale General cash offer General Collateral Financing Trades general contractor General Creditor General Depreciation System General Ledger general lien General Loan and Collateral Agreement General Mortgage General Obligation General Obligation Bond General Obligation Bonds General Order general partner general partnership General price level General Price Level Accounting General Revenue General Rule General Securities Registered Representative Examination General Services Administration General Straight-Line Depreciation System General Strike General Tariff General Utilities Doctrine general warranty deed generally accepted accounting principles Generally Accepted Auditing Standards Generation-Skipping Transfer or Trust Generic Generic Bond Generic Credit Spread Generic Market Generic Prices Generic Security Genetic Algorithms Gengetsu Gengetsukan Genka Hou Genka Shoukyaku Genkin Kessai Genkin Shugi Gensaki Gensaki Baibai Genson Gentlemen Prefer Bonds gentrification geodetic survey system geographic information system Geographic Risk	General Union of Palestinian Teachers General Union of Palestinian Women General Union of Students in Iraq General Union of the Nuba Mountains General Union of Voluntary Societies General Union of Workers General unitary group General Unitary Pre-Coder General University Academic Center General University Reference Utility General University Requirement general unloading period General Unrestricted Line General Updating of Frequent Itemsets general uprising General Urine Examination General Usage for International Digitally Ensured Commerce General Usage Network General Use Consumables List General Use Line Card General Use Pesticide General User General User Radio License General User Training General Utilities Doctrine General Utility Easement general utility index General Utility Lattice Program General Utility Library Program General Utility Squadron General Utility, Deck and Engine General Value Shifting Regime general verdict general verdict General Vesting Declaration General View General Visceral Afferent General visceral afferent fibers General visceral efferent General Vision Services general visual inspection General Vo General Võ Nguyên Giáp General Vocational Rehabilitation Assessment General Voters Party General Wage Increase general war General War Plan General War Reserves General War Subsystem

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Liquidating Dividend

1374 generally is designed to prevent a C corporation from circumventing the repeal of the General Utilities doctrine by converting to S corporation status before distributing appreciated assets to its shareholders or before selling appreciated assets and distributing the sale proceeds to its shareholders as part of a complete liquidation.

Recent amendment to sec. 1374 provides limited opportunity for S corps by Harris, Deanna Walton; Kugler, Paul F. / The Tax Adviser

In general, two taxes are due under sections 336 and 301 of the Internal Revenue Code upon dissolution of a C corporation because of the repeal of the so-called General Utilities doctrine by Tax Reform Act of 1986.

Turning back the clock: taxpayers avoid general utilities repeal ... by Petersen, Kagney / Tax Executive

In 1986, Congress repealed the last element of the General Utilities doctrine.

Calculating gain on corporate distributions by Schnee, Edward J. / Journal of Accountancy

general bill of sale

General cash offer

General Collateral Financing Trades

general contractor

General Creditor

General Depreciation System

General Ledger

general lien

General Loan and Collateral Agreement